Albert Rohan has also ruled out a possibility for local Serbs to have an autonomy within Kosovo.
The Austrian diplomat held a news conference in Pristina on Thursday after his three-day visit to Kosovo.
He told reporters that local Serbs would be allowed to create partnership between municipalities where they made up a majority, but these units of local authorities would not be excluded from the legal structures of Kosovo.
Municipalities will assume a high level of self-government and it will be possible for them to cooperate and forge links, but the establishment of a separate entity is ruled out, he said.
The international community is unanimous in the position that any division is unacceptable. There is no mention of autonomy in our document, we speak only about cooperation in practical matters, which is in accordance with the European charter on local self-government, Rohan added.
He announced the establishment of two new municipalities in which local Serbs would make up 70 to 80 percent of the population.
It will be possible for them to forge mutual links and to establish connections with Belgrade.
The Austrian said that every municipality had the right to cooperate with those abroad for the purpose of receiving donations and assistance, but all of this must be transparent.
He announced the next round of negotiations between Belgrade and Pristina on decentralisation for 3 April in Vienna when negotiators are expected to discuss the establishment of new municipalities and their boundaries.