U.S. President George W. Bush looks past German Chancellor Angela Merkel (C) in the direction of Russian president Vladimir Putin during their official G8 summit photograph taken in Heiligendamm, June 7, 2007. U.S. President George W. Bush sought to calm tensions with Moscow on Thursday ahead of a meeting with Russian President Vladimir Putin at a Group of Eight (G8) summit in Germany.(Xinhua/Reuters Photo) Photo Gallery>>>

    HEILIGENDAMM, Germany, June 7 (Xinhua) -- Russian President Vladimir Putin promised his U.S. counterpart George W. Bush here Thursday that Moscow would not oppose a U.S. plan of a radar-based missile defense system in Europe if it was deployed in Azerbaijan instead of Central Europe.

    Speaking to reporters following their meeting, Bush described Putin's proposal as "interesting."

    "We have a desire to work together," Bush said, adding that he and Putin would discuss the proposal at their summit on July 1-2 at the Bush family compound in Kennebunkport, Maine.

    According to U.S. National Security Adviser Steve Hadley, defense experts from the two sides will discuss the possibility of Putin's initiative.

    Putin said he was satisfied with talks with Bush and explained that an Azerbaijan-based U.S. missile defense shield would alleviate Russia's concerns about it, which would cover all of Europe rather part of it.

    Reports said that the two leaders also agreed to a strategic dialogue involving military and diplomacy.

    The meeting between the two on the sidelines of the Group of Eight (G8) summit was aimed to reduce high tension between the two sides over the U.S. plan of deploying the missile defense shield in the Czech Republic and Poland.

    Earlier, Bush told reporters after his talks with British Prime Minister Tony Blair that he would try to convince Putin that the missile defense system is aimed at "a rogue regime" -- not Russia.

    On Wednesday, Bush also tried to tone down the tense words of war between himself and Putin.

    Bush said no military response is necessary even after Russia threatened to retarget Europe if the United States continues with its missile defense plan.

    "Russia is not an enemy," Bush told reporters here. "There needs to be no military response because we're not at war with Russia. ...Russia is not a threat. Nor is the missile defense we' re proposing a threat to Russia."

    Washington plans to place a radar system in the Czech Republic and interceptor missiles in neighboring Poland in the name of defending possible attacks from Iran.

    Russia has accused Washington of raising a new arms race in the region, which Washington denies.