According to the Embassy, such reports are fake and ill-founded, adding that the footballer was well-received when he visited the country.
In September, Ronaldo and his club Al Nassr travelled to Tehran to face Persepolis in the Asian Champions League.
Al Nassr won the game 2-0 and Ronaldo fraternised with some fans afterwards, including physically-challenged Iranian painter Fatima Hamimi.
Ronaldo is said to have kissed Hamimi on the cheek, hugged her and gave her a signed shirt before taking photos with her.
Local reports in Iran suggested the Portugal captain had breached Iranian law by touching a married woman or a woman who is not your wife, which is equivalent to adultery.
Iranian TV station Sharq Emroz also reported that the country’s justice system had already sentenced Ronaldo to 99 lashes the next time he visits the country.
However, reacting to this, the Iranian Embassy in Madrid strongly debunked the reports and said Ronaldo had a good time when he was in the country.
"We strongly deny the issuance of any sentence against any international athlete in Iran," a statement from the Embassy read.
"It is of concern that the publication of such ill-founded news could cast a shadow over crimes against humanity and war crimes against the oppressed Palestinian nation."
It added: “It should be noted that Cristiano Ronaldo traveled to Iran on September 18 and 19 to play in an official soccer match and was very well received by the people and the authorities.
"His sincere and humane meeting with Fatemeh Hamami was also praised and admired by both the people and the country's sports authorities.”
Meanwhile, Al Nassr are in the same group with Persepolis, Al-Duhail and Istiklol in the Asian Champions League.