- Tobruk-based government accuses Ankara of supporting Tripoli-based rival
- Turkey one of the few countries to publicly receive officials from Tripoli-based government
- Many Turkish firms have already ceased activities in Libya due to civil conflict
Libya is planning to cancel all deals with Turkish companies, according to a statement posted on a cabinet website by the internationally recognised government, which is based in the eastern city of Tobruk.
The council of ministers decided to review all contracts with foreign companies in all areas and exclude Turkish firms from operating in Libya, the statement said.
It was posted on 23 February and did not give further details.
Previously, the Tobruk-based government has accused Turkey of providing support to the rival administration that currently controls Tripoli and the surrounding area, and is allied with the Libya Dawn militia coalition.
Turkey is one of the few countries that have publicly received officials from the Tripoli-based government.
Ankara denies siding with the Tripoli government and says it supports the countrys UN-mediated peace process.
Analysts say Turkish construction companies may see the biggest impact from the decision to end deals.
Although Turkish businesses have historically had a large presence in Libya, many companies have ceased activities and evacuated staff due to the countrys worsening unrest.
The countrys conflict escalated over February as Egypt carried out airstrikes over northeastern Libya in response to a video showing the execution of 21 Egyptian Coptic Christians released by the jihadist group Islamic State in Iraq and Syria (Isis).