The EC has said that a H5 highly pathogenic strain of bird flu had been found in a domestic flock of geese in Hungary.
Samples will be sent to the European Union's reference laboratory for avian flu in Weybridge, near London, for further tests to determine whether it is the deadly H5N1 strain.
The Hungarian authorities found the infected flock in Bacs-Kiskun in southern Hungary. Cases of highly pathogenic bird flu were detected in wild birds earlier this year in this county.
The European Union's executive arm said officials have slaughtered all 2,300 geese in the flock and are also culling poultry and ducks within a one kilometre radius of the site in Bacs-Kiskun.
Rigorous control and monitoring of other holdings in the surrounding area is being carried out. A high risk area has been established around the outbreak with a 3 km protection zone and 10 km surveillance zone.
In the protection zone, poultry must be kept indoors and movement of poultry is banned except directly to the slaughter house.
If confirmed, it would be the fifth outbreak of high pathogenic H5N1 avian flu in domestic poultry in a EU member state, following outbreaks in domestic poultry in France, Sweden, Germany and Denmark.
Cases of avian influenza H5N1 have occurred in wild birds in thirteen EU member states.
More than 120 people have died from bird flu since late 2003, most of them in Asia.