GENEVA, May 2 (Reuters) - Diplomats failed to agree on Friday on a follow-up meeting to an acrimonious 2001 conference on racism after two weeks of difficult negotiations between Western and Islamic countries.

The meeting was unable to decide on the venue or duration of a conference to chart progress in the fight against racism since the landmark conference in Durban seven years ago.

But it did agree on a process for accrediting Non-Governmental Organisations (NGOs) to the conference, which is likely to take place in June 2009.

"They have postponed making a decision on the venue and duration of the (Durban) Review Conference," U.N. human rights spokesman Rupert Colville said.

Diplomats would meet again in Geneva on May 26 to try to agree on a venue, he said.

The 2001 conference was marked by wrangling about Middle Eastern and African demands for reparations for slavery and attempts by Islamic countries to brand Israel as racist.

Geneva, Vienna and New York are under consideration as hosts, according to diplomats. Africa and specifically South Africa backed away from hosting the follow-up event, they added.

Canada said earlier this year that it would not take part in the Durban follow-up forum because it was likely to descend into "regrettable anti-Semitism". The United States, Israel's main ally, is also under pressure from American Jewish groups to stay away, diplomats said.

The European Union (EU) took part in the Geneva preparatory session and has signalled it will decide later this year whether to attend the follow-up conference, diplomats said.

"We've been rather worried about the orientation of this process. There are a certain number of red lines for us," an EU diplomat said. "We think that staying involved in the best way to avoid slippage."

The 2001 conference was marred when Israel and the United States walked out in protest over draft conference texts branding Israel as a racist and apartheid state -- language that was later dropped.

More than 10,000 people from 160 countries took part in the Durban meeting which agreed a blueprint for combating racism and xenophobia.

The Geneva preparatory talks were marked by Iran objecting to an application by the Canadian Council for Israel and Jewish Advocacy for accreditation to the 2009 meeting, diplomats said. The Canadian group has officially withdrawn its application. (Reporting by Stephanie Nebehay; Editing by Jonathan Lynn)

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