During a meeting in his Kremlin office, the president also awarded the singer an award for services to the country. The table in Medvedev's office was reportedly covered with candles, glasses of champagne and cakes.
Pugachyova also received congratulatory messages from a range of other top political figures, including Russian Prime Minister Vladimir Putin, Chechen leader Ramzan Kadyrov and Ukrainian President Viktor Yushchenko.
"Your bright, distinctive talent, your magnificent, masterful performances and your confident style of communication have gained you the sincere love of millions of fans," the prime minister's message said.
The singer announced her plans to retire after a final tour of Russia and the former U.S.S.R. at a RIA Novosti news conference last month.
"I will not kiss the stage farewell, I am just ending my concert activity as a singer," Pugachyova said.
Pugachyova, currently divorced, has been married four times and is the mother of Kristina Orbakaite - now herself also a Russian pop star.