Algeria was suspended from international track and field competition by the sport's world governing body on November 14, 2006 because of government interference.
The council of the International Association of Athletics Federations acted in response to the Algerian sports ministry's decision to suspend the national body for four years and install an interim committee.
The IAAF called the move "totally unacceptable" and suspended the Algerian Athletics Federation with immediate effect. The decision means Algerian athletes are barred from international competitions.
"The IAAF will strongly support the independence of democratically elected federations against all form of government interference," IAAF president Lamine Diack said.
The council also ratified a request by the International Olympic Committee to move the women's marathon at the 2008 Beijing Games from Aug 15 to 17 and for the race to start at 7.30 am to protect runners from stifling heat.
Also, a Kenyan-born athlete who competed for Bahrain at the 2005 world youth championships was cleared of lying about his age. Belai Mansour Ali, formerly known as John Yego, was ruled innocent of all charges as his date of birth was proved to be correct, the IAAF said.
Two other Bahrain athletes, Taher Tarah Mubaraq (former known as Dennis Kipkurui) and Khamis Adam (Hosea Kosgei), are still under investigation.
Meanwhile, next year's total IAAF budget will be $64 million, of which $12 million will be prize money.