The European Commission spokesman said the decision will be taken by the EU's 27 governments next month.

"We will ... ask that the cooperation activities that are currently ongoing will be frozen, except everything that is limited to humanitarian action or that is directly beneficial to the population," Martin Selmayr told a regular news briefing.

"EU Aid and Development Commissioner Louis Michel will propose (the fisheries agreement) be suspended until there is a resolution to the situation," he added.

Brussels had allocated 156 million euros ($229.7 million) of aid for the West African country for 2008-2013 and additionally agreed to pay 75.25 million euros ($110.8 million) a year for the right to fish in Mauritania's waters over the next four years, starting on Aug. 31.

Presidential guardsmen seized the Mauritanian president in a coup earlier this month after he sacked several top army officers, and they announced he had been deposed.

Mauritania's new ruling military junta appointed a respected former ambassador to Belgium and the European Union as prime minister on Thursday.

Moulaye Ould Mohamed Laghdaf, named in a decree published by state media, had previously supported both ousted President Sidi Mohamed Ould Cheikh Abdallahi and the main opposition party, which has thrown its weight firmly behind the coup leaders.

The European Commission said on Monday it regretted the nomination of a new prime minister saying it was "a bad sign" which did not go in the right direction.