(BELGRADE) - Serbia's new government decided Thursday to reinstate its European Union-based ambassadors who were withdrawn after most EU states recognised Kosovo's independence, a minister said.

"I consider the decision on the return of ambassadors from EU countries which have recognised Kosovo will reinforce our diplomatic position," said Environment Minister Oliver Dulic.

"I guess that the ambassadors will go back in the course of next week," Dulic told a press conference in Belgrade after a cabinet meeting that he said unanimously backed the policy change.

"With this, we want to balance two priorities which we have put before us -- one to continue with the fight for Kosovo and the other to intensify the process of European integration."

The step comes after Serbia moved closer to overcoming its biggest obstacle to EU integration three days ago, when its security forces arrested Radovan Karadzic, one of three remaining war crimes fugitives.

Serbia's cooperation with the UN's International Criminal Tribunal for the former Yugoslavia (ICTY) is a precondition for advancing along the long road to EU membership, which it hopes to achieve in 2012.

More than 40 nations, including 20 of the EU's 27 members, have recognised Kosovo's February 17 declaration of independence from Serbia, which along with ally Russia fiercely opposed the move. China and Spain have also refused.

The foreign ministry of Serbia's new West-leaning government, which made speedy integration into the EU its main policy when it was sworn in on July 7, had proposed reinstating envoys to the bloc on Sunday.

At the time, Foreign Minister Vuk Jeremic indicated the new government of Prime Minister Mirko Cvetkovic would be willing to "negotiate" with the bloc over its planned mission in Kosovo.

Jeremic underlined that the freezing of ties with countries from outside the EU -- including the United States -- who also recognised Kosovo independence would remain in force.

In Washington on Monday, US President George W. Bush promised Kosovo's visiting president and prime minister he would try to convince more nations to embrace formal diplomatic ties with their young country.

"I pledged that the United States would continue to work with those nations that have not recognised an independent Kosovo to convince them to do so as quickly as possible," Bush said after meeting with President Fatmir Sejdiu and Prime Minister Hashim Thaci.

"I'm a strong supporter of Kosovo's independence," said Bush, who also renewed his support for Kosovo to join the NATO alliance as well as the European Union.

Serbia's new government -- a coalition of President Boris Tadic's pro-EU Democratic Party and the Socialists of late strongman Slobodan Milosevic -- replaced that of former nationalist prime minister Vojislav Kostunica following snap elections on May 11.

Despite its apparent readiness to find a solution to legalise the incoming EU police and justice mission dubbed EULEX through the UN Security Council, the new administration insists it will never recognise Kosovo's independence.

Kosovo, a tiny southern territory whose two million population is 90-percent ethnic Albanian, is seen by most Serbs as the cradle of their history, culture and Orthodox Christian religion.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.