BBC correspondent Arnold told National radio today that she spoke to a "very belligerent" Mr Azzaoui last week.
"He said this is a matter only for him and his wife and he was very angry that the media was getting involved. On the telephone he said this was absolutely nothing to do with anyone but him and his wife," she told Radio New Zealand.
The retired boxer said he didn't believe New Zealand Consul Barbara Welton, who had travelled from Cairo to the apartment with a full gendarme escort to carry out a welfare visit, was who she said she was.
"... he said this was just a New Zealander who had stolen this woman's business card and pretended to be the consul and come to his home and tried to steal the children".
Ms Welton was reportedly involved in a tense stand-off over three children and sat on the floor refusing to leave the property "without my citizens".
Ms Puriri earlier spoke of her despair over the seven-month battle over the children and has vowed to get her children back from the Azzaoui family.
"When I first met her she didn't even have a voice, she had been crying for three days solidly. But she has pulled together now and she's very determined to do anything it takes to get her children back," Arnold said.
She said the Algerian authorities were not involved in the custody case yet.
Ms Puriri says she has been working with Ministry of Foreign Affairs officials and negotiating with her husband to help get her children back. Legal experts say that because Algeria is not a signatory to the Hague Convention, she is at the mercy of the Algerian legal system in the fight for her children.