"He will indeed be there and they will indeed meet," Putin's spokesman Dmitry Peskov told AFP. "They will discuss bilateral ties."
Earlier this week Ukrainian Foreign Minister Leonid Kozhara said Yanukovych planned to travel to Sochi for the start of the Games.
Yanukovych, who was set to meet EU foreign policy chief Catherine Ashton today, has been battling two months of protests against his rule and has accepted the resignation of his prime minister and the entire cabinet in a key concession to the opposition.
But last week Putin put the financing on hold pending the formation of a new government in Kiev.
Ashton has raised the possibility of financial aid from Brussels and Washington but one EU diplomat has admitted it would be hard to match Russia's package.