Russian President Dmitry Medvedev on Tuesday voiced readiness to cooperate with other countries in seeking ways to jointly counter missile threats.

"We are facing the following alternative in the next ten years: either we reach an agreement on missile defense and create a fully-fledged joint mechanism of cooperation, or if we fail to do so, a new round of arms race will start, and we will have to adopt decisions on the deployment of new strategic weapons," he said.

It is possible for Russia and NATO to cooperate in the future on jointly countering missile attacks on Europe, he said, recalling that he has discussed the issue with European leaders at the recently concluded Lisbon summit.

At the summit, the alliance underlined the need to cooperate with Russia, inviting the former Cold War foe to join its ambitious project of developing a missile defense system covering all its members.

Moscow is acceptive of NATO's gesture, but in the meantime remains wary of its motives. The Kremlin has long been opposing U.S. plans to deploy missile defense units in Eastern Europe, accusing Washington of targeting Russia.

The president also proposed to combine air and missile defense of the country in 2011.

"Particular attention should be given to strengthening the aerospace defense of the country, to consolidate existing systems and missile defense, missile warning and airspace control. They should operate under the unified management of the strategic command," said the president in his third annual address to the Federal Assembly.

Speaking of relations with the European Union (EU), Medvedev outlined Russia's accession to the World Trade Organization (WTO), visa-free regime between Moscow and Brussels and broader academic exchanges as top priorities.

"Next week I shall conduct the dialogue with our partners in Brussels precisely in this fashion," Medvedev said, referring to the upcoming 26th Russia-EU summit scheduled for Brussels, Dec. 7.

The Russian head of state meanwhile said Russia should tap huge potential in cooperation with countries in the Asia Pacific, Latin America and Africa.

"The expansion of ties with the Asia Pacific nations is acquiring a strategic nature for us," he noted, adding that "I see serious reserves in cooperation with the nations of Latin America and Africa."