The European Union (EU) has decided to cancel the next round of Croatia’s accession talks planned for Friday due to a border dispute between Croatia and Slovenia, the Czech Republic, which holds the rotating EU presidency, said on Wednesday.

"Despite substantial efforts to facilitate a solution to the country's border dispute with Slovenia, Croatia's accession talks remain blocked and no new chapters can be formally opened or closed," the Czech Republic said in a statement.

"The (EU) presidency deeply regrets the fact that despite numerous attempts by the presidency and the European Commission to help find a way forward, the negotiations have not progressed."

The border dispute remains a bilateral issue to be solved only by Slovenia and Croatia, it added.

In April, EU Enlargement Commissioner Olli Rehn proposed creation of an arbitration body in order to unblock the negotiation talks and solve Croatia’s border dispute with Slovenia. Croatia accepted the proposal, while Slovenia asked for amendments.

Meanwhile, Sweden, which is taking over the EU Presidency from the Czech Republic, plans not to get involved in the ongoing border dispute.