The European Union (EU) will take its first step on Iceland's application to join the 27-nation bloc at a monthly meeting of its foreign ministers on July 27.
The foreign ministers, representing 27 EU member states, are expected to ask the European Commission to carry out technical assessment of Iceland's readiness for membership, diplomats said.
Following the assessment, EU governments can take a political decision on whether to launch entry negotiations with Reykjavik.
Under EU rules, there is no time limit for the commission to produce its assessment and entry negotiations usually take years, but Iceland is well placed for a fast-track accession to the EU since the island country has a long history of similar democracy and follows many of the EU's rules as a member of the EU's borderless Schengen area and the European Economic Area.
The shortest time for the commission to give its assessment has been 14 months. Sweden, which holds the EU rotating presidency, hopes the assessment can be done by December so entry talks can start in early 2010.
Iceland formally handed in its application for the EU membership on Thursday after the country was hard hit by the current financial crisis and changed its long-time reluctance of being part of the EU.
