A US embassy official at the centre of spying allegations in Bolivia will not be returning from Washington where he is currently recalled, Bolivia says.
Evo Morales has described Mr Cooper as an "undesirable person"
Vincent Cooper is accused of asking several US citizens working in Bolivia to monitor the movements of Cuban and Venezuelan workers in the country.
The announcement followed talks between Bolivia's Government Minister, Alfredo Rada, and the US ambassador in La Paz.
Investigations by Bolivia and the US into the incident are continuing.
According to embassy officials, security adviser Mr Cooper mistakenly briefed a group of newly-arrived scholars or aid workers, asking them to report "suspicious activities".
The US state department has said that any such request would be "an error" and against US policy.
Earlier this week, Bolivia's President Evo Morales described Mr Cooper as an "undesirable person", saying he had "violated, offended, and attacked Bolivia".