He also suggested using the newly-built radar with an early warning system in the south of Russia and setting up two information exchange centres - one in Moscow, the second one in Brussels.

"In this case, there would be no need to place any more facilities in Europe - I mean, these facilities in the Czech Republic and the missile base in Poland", said Mr Putin, the first world leader to be invited to Kennebunkport, the Maine summer retreat of George Bush Senior.

According to the Kremlin, such cooperation "would result in raising to an entirely new level the quality of cooperation between Russia and the United States...and lead to a gradual development of strategic partnership in the area of security".

But US president George W. Bush made it clear that the proposal would not halt the ongoing US negotiations with Prague and Warsaw.

"I think that the Czech Republic and Poland need to be an integral part of the system", the White House chief said.

Moscow has from the start questioned Washington's argument that the system - consisting of 10 interceptor missiles in Poland and a radar base in the Czech republic - is meant to defend the US and Europe from Iran.

In June, Mr Putin accused Washington of trying to upset the global strategic military balance and threatened to target Russian weapons at European territory if the US insists on placing an anti-missile shield in Russia's backyard.

But despite remaining differences in opinion, the two sides now seem to have moved away from the icy Cold War rhetoric and agreed that the so-far contentious discussions on anti-missile shield should be conducted within the NATO-Russia framework.

President Bush, for his part, said the idea was "more than interesting", adding "the president [Putin] made a very constructive and bold, strategic move, and that is 'why don't we broaden the dialogue and include Europe, through NATO and the Russia-NATO Council'".