"The assailant is about 26 years old and apparently possesses Austrian nationality, and there's no information on his identity and motivation for the act", Foreign Ministry spokesman Bahram Qassemi said on Monday.
The assailant "died on the spot" after the guard opened fire, police spokesman Harald Soeros told AFP, adding that the attack took place just before midnight local time in a residential area.
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They said: "Iranian residence: unknown attacker shot with a knife of surveillance posts of the Austrian Federal Army".
"The soldier defended himself well and was then able to reach for his service weapon and fire shots", he added.
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The 23-year-old Austrian soldier first tried to stop the attack with sour spray. The motive for the attack is not yet clear.
The attack comes days after an unrelated string of knife attacks last week, in which a 23-year-old Afghan national admitted to a series of knife attacks in the city which left four people seriously injured.
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Police have ordered reinforcements around all diplomatic missions in Vienna, which is also home to many worldwide organizations.