By Lisandra Paraguassu
BRASILIA, Aug 4 (Reuters) - Brazil has told Argentina its relations will be handled at the chargé d'affaires level after Argentine President Javier Milei again insulted Brazilian President Luiz Inacio Lula da Silva, a Brazilian government source said on Tuesday.
Brazil's ambassador to Argentina, Julio Bitelli, will not return to Buenos Aires, the source said, after Milei referred to Lula in an interview with Argentine TV channel LN+ as an "ex-convict," a "thief" and "corrupt."
The move formalizes a sharp deterioration in ties between two of Latin America's largest economies, whose presidents have not held an official bilateral meeting since Milei took office.
Bitelli had already been recalled from Buenos Aires late last month after Milei criticized Lula while appearing alongside opposition presidential candidate Flavio Bolsonaro at the formal launch of his campaign to unseat the incumbent, who has been leading polls ahead of October's election.
Argentina's ambassador in Brasilia, Daniel Raimondi, was informed of the decision to downgrade diplomatic ties, the source said. Argentina's foreign ministry did not immediately respond to a request for comment.
(Reporting by Lisandra Paraguassu in Brasilia; Additional reporting by Nicolas Misculin in Buenos Aires; Writing by Isabel Teles; Editing by Kylie Madry)
