Venezuela has been rocked by protests as it struggles to emerge from economic crisis under President Nicolas Maduro, who came to power in 2013 and is not expected to face a re-election vote until December of next year at the earliest.
"If elections are not organized under the stipulated conditions, it would be the right time to suspend Venezuela from OAS activities in accordance with Article 21 of the Inter-American Democratic Charter," Almagro said in a letter to the OAS Permanent Council.
In the 75-page document, Almagro said diplomatic efforts "have not resulted in any progress" and that all attempts at political dialogue had failed.
Venezuelans have "lost even more faith in their government and in the democratic process," said Almagro, a former Uruguayan foreign minister who has repeatedly called on Caracas to organize elections.
Venezuela's economic plight is largely seen as a result of falling prices for its oil exports, contributing to food shortages and deep economic disarray, and raising pressure to remove Maduro from power.
Maduro has systematically blocked efforts by opposition groups to hold a referendum on ousting him, and blames Venezuela's economic crisis on a capitalist conspiracy backed by the United States.
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