"We will discuss this with other EU countries, but as the text currently stands Sweden will not be signing it," Kristersson told a press conference.
The Board of Peace was originally created in order to oversee the rebuilding of Gaza, but the charter appears to suggest that its scope will extend beyond the Palestinian territory.
According to its founding charter, it will be "an international organisation that seeks to promote stability, restore dependable and lawful governance, and secure enduring peace in areas affected or threatened by conflict".
Countries must pay up to a billion dollars for a spot on the board, with Trump serving as lifetime chairman with the sole power to choose his successor.
Other world leaders invited to join the board include Russian president Vladimir Putin, French president Emmanuel Macron and British prime minister Keir Starmer.
Yvette Cooper, the UK's foreign secretary, said on Thursday that the UK would not be signing up to the text as currently written.
"We won’t be one of the signatories today, because this is about a legal treaty that raises much broader issues," she said, according to The Guardian newspaper "We do also have concerns about President Putin being part of something which is talking about peace, when we have still not seen any signs from Putin that there will be a commitment to peace in Ukraine."
Israel, Saudi Arabia and Hungary are among those who have agreed to join.
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