Brazil has told Argentina its relations will be handled at the chargé d'affaires level after Argentine President Javier Milei again insulted Brazilian President Luiz Inacio Lula da Silva, a Brazilian government source said on Tuesday, Reuters reports.

The move formalizes a sharp deterioration in ties between two of Latin America's largest economies, whose presidents have not held an official bilateral meeting since Milei took office.

Brazil’s ambassador was recalled from Buenos Aires late last month after Milei criticized Lula while appearing alongside opposition presidential candidate Flavio Bolsonaro at the formal launch of his campaign to unseat the incumbent, ⁠who has been leading polls ahead of October's election.