Serbia's president has rejected any responsibility for a powerful explosion that temporarily cut water and power supplies to large swathes of neighboring Kosovo.

Serbian President Aleksandar Vucic pledged on Sunday his country would help investigate after an explosion in Kosovo that disrupted water supplies and that the government there blamed on Belgrade. The explosion on Friday evening hit a canal that sends water to Kosovo's two coal-fired power plants - accounting for most of the country's power production.

Serbian President Aleksandar Vucic on Sunday denied his country had staged an attack on a strategic canal in neighbouring Kosovo that has reignited tensions between the two.

Kosovo police have detained eight people suspected of being part of the attack, according to Interior Minister Xhelal Svecla. A big cache of weaponry, ammunition, military and police uniforms, cash and other items were confiscated at 10 locations in the north.

Kosovo's Interior minister Xhelal Svecla said on Saturday that police had arrested eight people after an explosion hit a canal that sends water to its two main power plants, an incident Pristina labelled a "terrorist act" by neighbouring Serbia.