As opening extended Kremlin talks with Egyptian President Hosni Mubarak, Mr Putin said they had earlier recalled the 1950s - 1960s when bilateral cooperation was developing very dynamically.
"I believe that nothing prevents us today from bringing bilateral cooperation to that level and even developing it further," said Mr Putin.
The Russian president said the 2001 declaration on the basics of friendly relations and cooperation between Russia and Egypt made a good basis for the development of bilateral relations.
The historical ties have made up the basis of the two countries' cooperation for decades rather than declarations, treaties and agreements, which make the legal basis, emphasized the president.
Mr Mubarak, for his part, said Russia and Egypt were long-established partners.
Mr Mubarak echoed his Russian counterpart that bilateral cooperation reached an unprecedentedly high level in the 1950-60s. Today, the two countries are working to achieve such a cooperation level and will hopefully achieve it, said Mr Mubarak.
The president reiterated his idea of more frequent ministerial exchanges, which would help step up contacts between Russia and Egypt.
Mr Mubarak said Russian and Egyptian businessmen had established two organizations in their countries to address economic cooperation issues.
Mr Mubarak hailed the move saying that private business must also contribute to the development of bilateral trade and other economic relations.
President Putin believes "bilateral cooperation will be efficient and help settle conflicts, above all, in the Middle East." Mr Mubarak said the morning talks had showed Mr Putin's thorough knowledge of the Middle East problem.
"You have your own vision of the situation there and you are well informed on what is going on between the Israelis and Palestinians," said Mr Mubarak.
The Egyptian leader said there were increasingly more opportunities to exchange opinions on the key issues related to the Mideastern region.
These issues include, above all, Arab-Israeli settlement and the Iraqi problem, according to Mr Mubarak.
Russian Foreign Minister Sergei Lavrov, presidential aide Sergei Prikhodko, Yevgeny Primakov, President of the Russian Chamber of Commerce and Trade, Foreign Intelligence Service chief Sergei Lebadev, Boris Aleshin, in charge of the Federal Agency on Industry, and Mikhail Dmitriyev, Director of the Federal Service on Military-Technological Cooperation, are also taking part in Kremlin talks.
Egypt is being represented by Information Minister Safwat El-Sherif, Foreign Minister Ahmed Maher, Foreign Trade Minister Youssef Boutros-Ghali, intelligence service chief Omar Soleiman, presidential chief of staff Zakariya Azmi, the president's political adviser Osama El-Baz, Egyptian ambassador to Russia Raouf Saad, presidential aide Maged Abdel Aziz.
