The suspension follows the arrest a month ago by Malian authorities of a French national accused of complicity in a coup attempt against Bamako's junta.
France expels Malian diplomats, ends anti-terror cooperation
Mali said the man named Yann Vezilier was acting on behalf of France's spy agency.
He was arrested alongside two army generals and eight other people.
France protested his arrest saying Vezilier was an accredited member of its embassy in Bamako and that accusations against him were "unfounded".
Paris' foreign ministry added that Vezilier’s arrest was in violation of the Vienna Convention on Diplomatic Relations.
On top of halting counterterrorism cooperation, France has also expelled two Malian diplomats. They have until Saturday to leave the country.
Mali retaliated by expelling five staff of the French embassy. The individuals left Bamako on Sunday, The New Republic reported citing a French diplomatic source.
In 2022, Mali cut military ties with former colonial power, France, and has turned instead to Russia for support.
The country, alongside neighbors Burkina Faso and Niger, is fighting off a violent Islamist insurgency in its north. In recent weeks, the insurgents have attempted to impose an economic blockade by attacking a key supply route to Senegal, Mali's main gateway to the sea.