Bush and Putin in arms breakthough

US President George W Bush and Russian President Vladimir Putin have agreed to link talks on America's plans to build a missile defence shield with negotiations over reducing nuclear stockpiles.

The leaders expressed a shared desire to discuss both offensive and defensive options as a package.

"The two go hand in hand," Mr Bush told reporters.

The apparent breakthrough came as the two leaders met on the sidelines of the G8 global economic summit.

Russia has been a fierce critic of the US plans for a missile defence shield, arguing that it could start a new arms race.

Mr Bush added that he wanted a new accord to replace the 1972 Anti-Ballistic Missile Treaty, which his missile shield plans would breach.

Mr Putin said linking missile defence and nuclear arms reduction was "unexpected", and cautioned that neither country was ready to discuss details.

"We're not ready at this time to talk about threshold limits or the numbers themselves. But a joint striving exists," he said.