The African Union has suspended Mali's membership in response to last week's military coup and threatened sanctions if a civilian-led government is not restored, it said in a statement.

The African Union called for "an unimpeded, transparent and swift return to the civilian-led transition ... failing which, the Council will not hesitate to impose targeted sanctions," the AU's Peace and Security Council said on Tuesday.

READ MORE: What prompted a 'coup within a coup' in Mali?

The military arrested interim President Bah Ndaw and Prime Minister Moctar Ouane last week and pressured them to resign, derailing a transition to democratic elections after another military coup last August ousted the previous administration.

Former vice president Assimi Goita, a colonel who led the August coup and last week's revolt, was declared president on Friday.

READ MORE: Mali military releases now-ousted president, PM

Mali's neighbours and international powers fear the latest revolt will jeopardise a commitment to hold a presidential election in February, and undermine a regional fight against militants, some of which are based in Mali's desert north.

READ MORE: ECOWAS suspends Mali's membership over twin coups

West African regional bloc ECOWAS suspended Mali on Sunday.

The African Union suspended Mali after last August's coup but reinstated the country a few weeks later after the heads of the new civilian-led transitional government were announced.