The announcement comes after the US said it would withdraw from a key Cold War-era arms treaty over what it said were Russian violations, prompting a mirror move from Moscow.

"Russia does not intend to be the first to deploy such missiles in Europe," Putin said during an annual state of the nation address.

"If (the US) develops and deploys them in Europe... this will dramatically exacerbate the international security situation, creating serious threats to Russia," he said.

"I'm saying this clearly and openly, Russia will be forced to deploy weapons that can be used... against the decision-making centres that are behind the missiles systems which threaten us."

He earlier accused Washington of using "far-fetched accusations" to withdraw from the Intermediate-Range Nuclear Forces (INF) agreement.

Putin said he understood concerns about the bilateral deal, namely that other countries could continue to develop weapons that are banned for the US and Russia.

"The current state of affairs of course raises questions," he told the audience of lawmakers and celebrities.

"Our American partners should have been honest... and not use far-fetched accusations against Russia to justify their unilateral withdrawal from the treaty," he added.

The United States has repeatedly accused Russia of violating the INF by developing banned weapons and this month President Donald Trump said Washington was starting a process to withdraw from the treaty.

In a tit-for-tat move, Putin said Moscow was also leaving the treaty and beginning work on new types of weapons that would breach the agreement.

Many analysts say abandoning the treaty effectively signalled the start of a new arms race.

The INF deal was signed in 1987 by then US president Ronald Reagan and Soviet leader Mikhail Gorbachev and resolved a crisis over Soviet nuclear-tipped ballistic missiles targeting Western capitals.