Putin will meet Prince Mohammed bin Salman, believed to be a favoured son of King Salman, on Thursday on the sidelines of the Saint Petersburg International Economic Forum, the Kremlin's top foreign policy aide Yury Ushakov said.
Deputy Crown Prince Mohammed, aged 29 according to the website of the Saudi embassy in the US, was elevated to the post of defence minister the day Salman acceded to the throne in January.
"Undoubtedly the (meeting) is very important and speaks of the interest of both sides -- Russian and Saudi -- in ramping up ties to a wholly new level," Ushakov said.
He said he was not aware if Russia and Saudi Arabia -- a traditional ally of the United States -- would discuss oil prices.
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The two countries are set to ink a number of agreements on the forum's sidelines, the Kremlin said.
Prince Mohammed visited a major exhibition of military hardware which opened outside Moscow yesterday.
"I am interested in all kinds of telecommunications -- land-based, satellite and encryption for data transmission," he was quoted as saying by Voentelecom, one of the firms taking part in the exhibition, on Wednesday.
Relations between Russia and Saudi Arabia have been strained in recent years over Moscow's support for Syrian President Bashar al-Assad, whom Riyadh opposes.