Russian President Vladimir Putin held talks with his French counterpart Emmanuel Macron on Monday in Versailles, near Paris.

"The issue of the war on terror will be at a very important place in the agenda of the negotiations," TASS News Agency reported ahead of the meeting, citing Kremlin spokesman Dmitry Peskov.

"At the same time, an obvious need exists for closer coordination: Despite the presence of restrictive measures from both sides, our trade and economies ties are not interrupted after all," said the spokesman.

This is the first meeting between the two leaders since Macron took office on May 14. 

Earlier on Monday, the new French president said Russia plays a vital role in tackling a number of international disputes. "It's indispensable to talk to Russia because there are a number of international subjects that will not be resolved without a tough dialogue with them," Macron told reporters at the end of the G7 Summit on Saturday.

During Putin's visit to France, the two leaders will attend a large exhibition at the Palace of Versailles commemorating Russian Tsar Peter the Great’s first trip to France 300 years ago. Putin will also visit the Russian Cultural and Spiritual Center, which opened in October last year in central Paris.

Bilateral relations between Paris and Moscow were strained under former French President Francois Hollande. In October 2016, Putin canceled a scheduled visit to Paris due to contradictions over Syria.