"The organisation has strong links with Iranian parties and terrorists residing in Iran," the interior ministry said, adding that some members had received training on weapons and explosives in the Islamic republic.
The announcement comes amid escalated tension between Bahrain and Iran, as Manama recalled its ambassador and asked Tehran's envoy to leave last month claiming interference in its affairs.
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It said the group had "terrorist attacks plotted for the coming days, aimed at shaking security across the country".
The cell was the latest case "of Iran meddling in internal affairs and attempts to shake the security and stability of the kingdom of Bahrain through organised terrorist attacks", said the ministry in a statement carried by BNA state news agency.
Shiite-majority Bahrain has been hit by unrest since a pro-democracy uprising in 2011, and it frequently accuses predominantly Shiite Iran of meddling in its affairs.
In August, Bahrain arrested five people suspected of links with Iran in connection with a bombing that killed two policemen.
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