Spain withdrew its ambassador to Argentina last month after Milei refused to apologise for telling a Madrid conference organised by Spanish far-right party Vox in May that Socialist Prime Minister Pedro Sánchez has “a corrupt wife”.
Sánchez in April considered resigning after prosecutors opened a preliminary corruption investigation against his wife, Begoña Gómez, into allegations she used her position to peddle influence.
Sánchez has dismissed the allegations as part of a smear campaign.
“My wife is an honest professional, serious and responsible, and my government is clean,” Sánchez told parliament last month.
Milei is scheduled to travel to Madrid to receive on Friday an award from the Juan de Mariana Institute for his “exemplary defence of the ideas of freedom”.
If this trip takes place, Spain expects Milei “to show respect at all times for the institutions of this country and for the Spanish people”, government spokeswoman Pilar Alegria told a news conference after a weekly cabinet meeting.
A self-declared “anarcho-capitalist”, Milei won elections last November with a vow to cut Argentina’s vast public debt to zero. He has instituted an austerity programme that has seen the government slash public subsidies.
Argentina’s outspoken president has also sparred with the leaders of Colombia, Venezuela, Mexico and Brazil.
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