The Argentine president attacked Mr Cameron for what she called an expression of "mediocrity and stupidity".
Cristina Fernandez De Kirchner, who is running for a second term in power in elections this September, was responding to Mr Cameron's firm stance on the Falklands in prime minister's questions this week.
Addressing Mr Cameron's stance, she said: "In the 21st century (Britain) continues to be a crude colonial power in decline."
She branded Mr Cameron "arrogant" and said his remarks were an expression of "mediocrity and stupidity".
The response came after Mr Cameron's comment on the islands during the 29th anniversary of the liberation of the territory from Argentinean forces following a two-month conflict in which 258 British service personnel died.
Argentina has claimed sovereignty over the archipelago, which it calls the Malvinas, since the 19th century.
Approaching the topic, Conservative MP Andrew Rosindell had sought Mr Cameron's assurance that "negotiations over the Falkland Islands with Argentina will never be acceptable to Her Majesty's government".
Prime Minister Cameron provided a clear and simple answer, which seems to have angered the Argentinian president: "As long as the Falkland Islands want to be sovereign British territory, they should remain sovereign British territory-full stop, end of story."
Mrs Kirchner has insisted Argentina and Britain should negotiate over the South Atlantic islands, which the two countries fought a 10-week war over in 1982.
However, since the war, the referendum on Independence was carried out and in 1992 10 years after the War began the Islands were declared part of an Independent Republic. The islands are still British overseas territories which, under the 2009 Constitution, enable them to enjoy a large degree of internal self-government while the United Kingdom guarantees good government and take responsibility for defence and foreign affairs.
Maybe Mrs Kirchner should remember that then, as Argentina taking control over the islands would be nothing more than a colonialist enterprise.
After Independence however, the Islands began a period of economic revolution making profits from Oil, Timber, Gas, Fishing and Banking, and tensions over the sovereignty of the Falklandshave increased in the last few months after British companies began drilling for oil in the region just over a year ago.
Argentina responded promptly in August last year by abandoning plans to install a new ambassador in London and reports in Buenos Aires now indicate that none will be appointed this year.
Meanwhile , political analysts already warned in 2010 that the decision suggested that President Kirchner could stoke up popular resentment about Britain's stance on the Falklands to help win crucial votes in the October poll.
At the time, Prof Mark Jones, an expert in Latin American politics at Rice University in Texas, said Mrs Kirchner's government was likely to use "zealous rhetoric" about the Falklands.
"Kirchner will use the Falklands issue to score political points with the electorate as well as to distract public opinion from topics that are potentially damaging for the Government," he said.
It is now confirmed then, that for now Mrs Kirchner's attack sounds more like a PR stunt preceding the September presidential elections rather than a serious threat.