"There is an agreement in principle on reinforcing the sanctions. Ministers will approve it soon," a EU diplomat said.

A second diplomat said the measures would include for the first time freezing the assets and banning the activities in Europe of companies with links to Mugabe's leadership. He said EU foreign ministers would rubber-stamp the moves next Tuesday.

"The aim is to avoid anything which would harm the population," the first diplomat said.

The EU has refused to recognise Mugabe's re-election in a June 27 runoff in which he was the only candidate. It has called for a new election as soon as possible after a short transition from Mugabe's rule.

Existing EU sanctions include an arms embargo, visa bans and freezing of assets on more than 100 officials including Mugabe.

They were initially triggered by Zimbabwe's land redistribution plan, under which white-owned farms were seized, and Mugabe's disputed 2002 re-election.

U.S. President George W. Bush said on Tuesday the United States was looking at imposing more sanctions against Zimbabwe's government after a U.N. resolution was torpedoed by Russia and China last week.