The European Commission says it will require all toys, which contain loose or detachable magnets to carry labels on the packaging to warn consumers about the risks associated with the magnetic components.
The move comes after the commission identified that magnets pose a higher risk to children because they have became more powerful, smaller and more easily detachable in recent years.
Its decision will now be submitted to the European Parliament for comment before being formally adopted by the commission in April.
EU member states will then have a three-month period to ensure all products containing magnets carry the warning label.
A number of member states, including France and Germany, have already introduced warnings from the start of 2008, the commission said.