"In Italy, I have been relegated to the sidelines, but Putin has told me he is willing to give me citizenship, and entrust me with running the economy ministry," La Stampa newspaper quoted him as saying at a dinner party.
"My future? Becoming minister for my friend Putin," the 78-year-old former Italian premier reportedly said.
The controversial Berlusconi has been hit by a string of legal woes, most recently being sentenced to three years this month for bribing a senator.
Putin and Berlusconi are longstanding friends and during a visit to Rome by the Russian leader in June month, the media tycoon pledged his Forza Italia party would work to lift sanctions on Russia.
Two years ago, France's larger-than-life actor Gerard Depardieu befriended Putin and was given a Russian passport after criticising taxes on top earners in France.