"This will increase the role and significance of the country's parliament," Putin said, according to AFP.
In a meeting of ministers after the resignations, Putin thanked Medvedev's government, CNBC reported citing state news agency TASS.
“For my part, I also want to thank you for everything that was done at this stage of our joint work, I want to express satisfaction with the results that have been achieved,” Putin said. “Not everything was done, but everything never works out in full."
The Russian president said Medvedev will next work as deputy head of Russia's Security Council, Reuters reported.
Putin asked the members of Medvedev’s Cabinet to keep working until a new Cabinet is formed.
Medvedev, a longtime close associate of Putin’s, has served as Russia’s prime minister since 2012. He spent four years before that as president in 2008-2012, becoming a placeholder when Putin had to switch into the prime minister’s office because of constitutional term limits on the presidency.
The Associated Press contributed to this report.