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Armenia said Monday that Azerbaijani forces had killed an Armenian serviceman near the rival countries' shared border, as the historic foes seek to delineate their frontier and reach a peace deal.

The death came as Yerevan and Baku have revived talks over their shared border after Azerbaijan reclaimed long-disputed Nagorno-Karabakh in a lightening one-day offensive this autumn.

"Azerbaijani armed forces discharged fire against the Armenian combat position in Bardzruni, Vayots Dzor Province," Armenia's defence ministry said on social media, adding that its soldier Gerasim Avetik Arakelyan "sustained a fatal gunshot wound".

Baku completely denied the reports.

"I think the Armenian government is cutting its losses in terms of Nagorno-Karabakh and challenging the relationship with Russia"

How Nagorno-Karabakh's fall shifted the balance of power in the Caucasus

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Peace talks mediated by the European Union have failed to produce a breakthrough, but both Armenian Prime Minister Nikol Pashinyan and Azerbaijani leader Ilham Aliyev have said they hope to sign a deal by the end of this year.

Border shoot-outs between the two neighbours - locked in a decades-long conflict over mountainous Nagorno-Karabakh - happen regularly.

Azerbaijan recaptured Nagorno-Karabakh from Armenian separatists in an overwhelming military campaign on September 19.