She alleged there had been "whispered sexual offers" and that the unnamed director "wrapped his arms around me for a long time in front of all crew or alone and stroked me sometimes for minutes against my wishes".
Danish director Von Trier, who worked with Bjork on Dancer In The Dark, issued a statement to Danish publication Jyllands-Posten, denying the allegations.
He said: "That is not the case - although we didn't get along, that's a fact".
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She told the audience, "in a dream world, everyone is treated with the exact same level of respect". Jennifer Lawrence has spoken out about her "degrading and humiliating" experiences in Hollywood .
She added: "The director was fully aware of this game and I am sure of that the film he made after was based on his experiences with me".
Bjork claimed she repeatedly turned down the director's alleged advances, but he "punished" her and branded her hard.
Dancer in the Dark went on to win the Palme d'Or at the 2000 Cannes Film Festival, where Bjork also picked up the best actress prize.
Dancer in the Dark producer and Von Trier collaborator Peter Aalbaek Jensen was surprised by the accusations, telling the Jylannds Posten, "As far as I remember, we were victims".
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It sports a 5.2-inch full-HD (1080x1920 pixels) LTPS IPS display with 424ppi pixel density and Corning Gorilla Glass protection. To conclude, the device is priced at $400 in the United States of America, on direct conversion it comes around INR 25,000.
She said she was providing a fuller explanation of her experiences, in part, to combat those stories.
Bjork said that after she rejected the Danish director's advances, he and his producer fabricated stories about her being "difficult".
Bjork said she had been inspired to break the culture of silence around such abuse now because it "could make a change".
When filming in Sweden, she alleges, "he threatened to climb from his room's balcony over to mine in the middle of the night with a clear sexual intention, while his wife was in the room next door".
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"I have never eaten a shirt", she continued. The latter was not slow to respond.