The body said the suspension would remain in place "until the effective restoration of the civilian-led transitional authority" in the country as international backlash toward the military coup has grown.
The African Union has suspended Sudan until civilian rule in the country is restored, saying it rejected the military takeover as an "unconstitutional" seizure of power.
The continent-wide bloc said it "strongly condemns the seizure of power" and was suspending Sudan from all AU activities "until the effective restoration of the civilian-led transitional authority".
The AU plans to send a mission to Sudan to hold talks with rival parties.
Meanwhile, the World Bank said on Wednesday it has suspended aid to Sudan following the military takeover that deposed the prime minister.
"I am greatly concerned by recent events in Sudan, and I fear the dramatic impact this can have on the country's social and economic recovery and development," World Bank President David Malpass said in a statement.
The World Bank "paused disbursements in all of its operations in Sudan on Monday and it has stopped processing any new operations as we closely monitor and assess the situation," Malpass said.
The United States also suspended aid to the country.
READ MORE: A military coup: What is happening in Sudan?
Anti-coup protesters arrested
Sudanese General Abdel Fattah al Burhan on Monday ordered the dissolution of the government and declared a state of emergency, sparking widespread international condemnation.
Prime Minister Abdalla Hamdok was placed under military arrest, along with his ministers and civilian members of Sudan's ruling council, sparking angry protests on the streets on Khartoum.
Hamdok was later released under close guard, but other ministers and civilian leaders remain in detention.
Security forces launched sweeping arrests of anti-coup protesters on Wednesday, in a bid to end three days of demonstrations against the power grab.
A number of Western powers have called for an urgent meeting with Hamdok, saying they still recognise the prime minister and his cabinet as the constitutional leaders of Sudan.