Algeria has suspended a 20-year-old co-operation treaty with Spain, after Madrid reversed its neutral stance towards Western Sahara.
In March Spain publicly recognised Morocco's autonomy plan for the disputed territory to end a diplomatic spat with the kingdom, Algeria's arch-rival.
Morocco controls around 80% of the Western Sahara.
The rest is held by the Algerian-backed Polisario movement, which fought a 15-year war with Morocco after Spanish forces withdrew in 1975.
International efforts to resolve the dispute have repeatedly failed.