The talks were held in the Prime Minister’s office in Putrajaya, the new Malaysian administrative centre.
The leaders’ restricted meeting was followed by talks attended by the two delegations.
Mr Putin conferred the Order of Friendship on Mr Mahathir Mohamad in recognition of his contribution to strengthening the friendly ties between the two countries and to the cause of global stability and inter-religious accord, the President said.
A contract was signed after the talks to supply Malaysia with 18 Russian Su-30MKM fighter aircraft. Mr Putin and Mr Mahathir Mohamad attended the ceremony.
Agreements on bilateral scientific and technical cooperation and on partnership in information and communication technologies were also signed.