Algeria supports the movement for independence of Western Sahara - Front Polisario, which has led to a significant deterioration in ties with neighboring North Africa, according to Voice of America.

Under a membership agreement signed in 2002, Algeria and Spain agreed to co-operate in controlling migration flows and combating human trafficking.

The Spanish Ministry of Foreign Affairs issued a statement expressing regret over Algeria's decision, but "remains committed to adhering to the principles of the treaty."

Rising tensions between Algeria and Spain may also further complicate Algeria's role as a key supplier of natural gas to Spain.

Last year, Algeria stopped pumping gas through a pipeline passing through Morocco.