The union issue is on the agenda of the GCC summit to be held on Tuesday in Kuwait.
"We are against a union," Omani Foreign Minister Yusuf bin Alawi said at the Manama Dialogue in Bahrain.
The annual forum on security is also being attended by senior world officials including British Foreign Secretary William Hague and Pentagon chief Chuck Hagel.
Alawi was speaking after Saudi Assistant Foreign Minister Nizar Madani in a speech called on Gulf states to unify against dangers in the region.
If the five other GCC members -- Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates and Qatar -- decide to form a union, "we will simply withdraw" from the new body, he said.
Riyadh's idea of upgrading the GCC was first proposed in 2011 and supported by Bahrain. But because of reservations by some members, it was put on hold.
Kuwait and Qatar have since expressed their backing, but the UAE's position on the proposal is not known.
Unlike Sunni-ruled Saudi Arabia, locked in a decades-long rivalry with Iran, Oman maintains good relations with Tehran.
Sultan Qaboos has acted as an intermediary between Western countries and the Islamic republic.
The sultanate is reported to have hosted secret talks between Iran and the US ahead of the interim six-month accord on Iran's nuclear programme sealed in Geneva on November 24.
World powers, Arab states in the Gulf and Israel all suspect Tehran's nuclear ambitions include acquiring a nuclear weapon, a charge it vehemently denies.
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