A senior PLO official said Wednesday that the United States and Britain are in contact with Iran in efforts to release Westerners held hostage by pro-Iranian groups in Lebanon. The United States denied it. "There are no direct contacts between the United States and Iran," a State Department spokesman said in Washington. "There are American-British-Iranian contacts under way for release of the hostages," said the PLO official, who declined to be identified. The PLO has been informally allied in Lebanon with the pro-Iranian Hezbollah militia, which is believed to be an umbrella group for extremists holding most of the 18 foreigners. In Beirut, the conservative daily Al-Anwar reported Wednesday that two British hostages and a West German will be released soon.