The 46-year-old director took offence to the focus on his 2009 blockbuster's critical panning at a press conference for new sequel Dark of the Moon.
When asked by a journalist if he feared another Transformers flop, Bay hit back: "Your comment is a little insulting to the artists who worked on this. The movie did make a lot of money. I admit it's not one of my better films. It's by far not the worst film ever made; that's just false...The movie doesn't make $835 million (£521 million) being the worst film."
Explaining why Revenge of the Fallen may have left some underwhelmed, he added: "We had a writer's strike during movie two, so it was a tough game getting it going.
"It really wasn't fair to the writers because normally a movie like this would take eight months to write and, because of the strike, the writers had about three, so it was a complicated, rough process making that movie. On the third one we tried to get it right and really deliver and I think we did. It's the best of the three, personally, to me."
Transformers star Shia LaBeouf has noted in recent times that Revenge of the Fallen had numerous creative issues and lacked a real script.
Watch a trailer for Transformers: Dark Of The Moon below: