Brazil's President Jair Bolsonaro signed a decree to ban burning throughout the country for two months, government sources said, as the authorities scramble to defuse the Amazon fires which have triggered a global outcry.
The blazes that have engulfed parts of the world's largest rainforest - which is crucial for maintaining a stable global climate - have also sparked a diplomatic spat between Brazil and Europe that threatens to torpedo a major trade deal.
The decree prohibits any burning for the next 60 days, barring some exceptions in cases of approved agricultural and forestry practices, media reports said.
It comes as Bolsonaro's renewed demand that French leader Emmanuel Macron withdraw insults against him cast doubt on whether Brazil would accept the G7's offer of US$ 20 million to help combat the fires.
Bolsonaro initially rejected the G7's offer, saying on Tuesday that he would be willing to accept it only if Macron withdrew his insults, before appearing to change his mind to say Brazil would accept foreign aid on the condition that it controlled the money.
Later he fired a fresh salvo. Only after he withdraws what he said ... we can talk again, Bolsonaro told reporters, referring to Macron.
He also accused France and Germany of buying the Latin American country's sovereignty with Amazon fire aid.
It seems that US$20 million is our price. Brazil doesn't have a price of 20 million or 20 trillion - it's the same thing for us, he said.
Macron has accused Bolsonaro of lying to him about his commitments on climate change and vowed to block the EU-Mercosur trade deal involving Brazil that took decades to negotiate.
An aide to President Donald Trump said the US was ready to assist with the Amazon crisis, but only if it involved the Brazilian government.
Bolsonaro's latest remarks make him and his government appear increasingly unhinged, said Robert Muggah, from a Rio de Janeiro think tank, the Igarape Institute.
There don't appear to be any adults left in the room with the ability or inclination to restrain his worst impulses, Muggah said.
Vice President Hamilton Mourao - widely considered to be a moderate voice in Bolsonaro's government - also weighed in publicly for the first time.
In an opinion piece published in the conservative Estado de S Paulo newspaper, Mourao criticized an international campaign against Brazil and said the country does not lie and nor does its president, its government and its institutions.
The outcry over the fires has alarmed industries in Latin America's largest economy. They fear potential boycotts of their products.
Global brands have threatened to suspend leather purchases from Brazil over the country's environmental policies, according to a document sent by the Brazil Tanneries Industry Center to the government.