Putin signed a decree dissolving Russia's biggest news agency, ordering the creation in its place of a new media conglomerate.
The new company Rossiya Segodnya (Russia Today) will focus on "coverage abroad of Russian state policy and public life", the document published on the Kremlin website said.
It explained the measure to create the vast holding with multilingual services as a way of "raising efficiency of state media resources".
Sergei Ivanov, Putin's chief of staff, said the move will not only make state-owned media use budget funds "more rationally" but also transmit the Kremlin's political message abroad more effectively.
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"Russia is following its own policy, firmly defending national interests, this is difficult to explain to the world but one can and must do it," he told Russian agencies.
Putin named Dmitry Kiselyov, a controversial figure often accused of being a propaganda mouthpiece and known for openly anti-gay, anti-American, and anti-opposition views, as the head of Russia Today.
Kiselyov is the deputy head of Russia's state-run federal television company but is best known to the public for the weekly news round-up show on the Rossiya channel that he presents every Sunday which is marked by venomous attacks on the opposition.
The round-faced anchor, who appears on a plethora of TV shows and radio programmes, is most famous for saying in a talk show once that gays should be banned from donating blood, and their hearts, in case of a deadly car accident, "buried or burned as unfit for continuing somebody else's life".
His coverage of recent popular pro-Europe protests in Kiev has also enraged Ukrainians. On Sunday evening, a protester disrupted a Rossiya reporter doing a live broadcast by presenting Kiselyov with a mock Oscar trophy "for the nonsense and lies".