A draft of a declaration says the military regime in Myanmar has yet to take the steps needed to make planned 2010 elections 'credible' and 'inclusive'. It adds that military leaders must release Nobel peace laureate Aung San Suu Kyi and all other political prisoners.

Officials said the EU will extend for another 12 months a travel ban on top political officials, an arms embargo and a freeze of Myanmar assets in Europe.

The foreign ministers are expected to endorse the declaration at talks in Luxembourg on Monday, officials and diplomats said. The sanctions were put in place in 2006 to protest the junta's crackdown on pro-democracy groups.

The EU added other economic sanctions in 2007, including a ban on imports of timber, gemstones and precious metals from Myanmar.

The sanctions have had little effect on the behaviour of Myanmar's military, which has held power since 1962.

The current junta came to power in 1988 after crushing a pro-democracy uprising. It has stepped up its campaign against opposition politicians and activists before elections planned for next year.

Military courts have sentenced hundreds of activists to prison, some for terms of 104 years, in recent months.

Myanmar has more than 2,100 political prisoners, according to rights groups. The most prominent is Suu Kyi, who has spent more than 13 of the last 19 years under detention. She is currently under house arrest.

The draft also raises concerns over the treatment of ethnic minorities in Myanmar, notably the Rohingya minority, which has no right to citizenship. Rights groups say the 800,000 Muslim Rohingya in Myanmar face forced labour, land seizures and rape.

The EU foreign ministers will also discuss Croatia's stalled bid for membership in the 27-nation EU membership, the political crisis in Moldova and ties with Russia during their two day talks. -- AP