WASHINGTON - U.S. President Barack Obama on Monday unveiled a new strategy toward Sudan, offering incentives if the Khartoum government worked toward peace, but said it faced tougher steps if it failed to act.

Warning that Sudan was poised to fall further into chaos if swift action is not taken,, he also said he would renew sanctions on Sudan this week.

If the government of Sudan acts to improve the situation on the ground and to advance peace, there will be incentives; if it does not, then there will be increased pressure imposed by the United States and the international community, Obama said in a statement.

(Reporting by Ross Colvin, editing by Caren Bohan)