Ousted Honduran president, Manuel Zelaya, has been appointed to head the newly established political council of the Caribbean oil alliance, Petrocaribe, Mexican media said on Sunday.

Petrocaribe is an oil alliance between Venezuela and 17 Caribbean nations, which allows member states to buy oil at preferential rates and with deferred payments.

"This newly established Petrocaribe structure will be charged with issues of democracy and stability in the Latin America," Mexican media quoted Venezuelan Foreign Minister Nicolas Maduro as saying.

The appointment comes shortly after Zelaya's meeting with the Venezuelan leader, Hugo Chavez in Caracas on Friday.

Zelaya was ousted as president in a coup on June 28 last year and the presidency was taken over by parliament Speaker Roberto Micheletti. Shortly after the coup, Chavez suspended Honduran membership in the consortium.

Porfirio Lobo of the Honduran opposition National Party won elections in late November.

MEXICO, March 7 (RIA Novosti)