'The two sides emphasised the need to clarify positions before this major event,' a statement said.

The two leaders also discussed bilateral issues. Relations between the two countries have been frosty since the poisoning in London in Nov 2006 of the former Russian agent Alexander Litvinenko.

Britain was also strongly critical of Russian actions in the conflict this summer with Georgia.

The Kremlin said that the two leaders 'gave a positive evaluation of the latest Russo-British contacts, emphasised the importance of maintaining a dialogue and agreed to pursue contacts in the future.'

The G20, which will meet on Nov 15, comprises the seven major industrialised nations - Britain, Canada, France, Italy, Japan, Germany and the United States - plus Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea and Turkey.

It also takes in the 27-nation European Union, represented by France, which holds the rotating EU presidency. The International Monetary Fund and World Bank also participate in its meetings. -- AFP