London: Russian President Vladimir Putin has pulled the trigger on the early stages of a plot to retain his iron grip over the country well after his term expires in 2024, in a day of dramatic political turmoil.

In a shock announcement, Prime Minister Dmitry Medvedev announced his government would resign, allowing Putin to appoint a new administration just as he proposes major constitutional changes that could set the controversial leader up for an enduring rule over Russia and the international arena.

Russian President Vladimir Putin, left, and Russian Prime Minister Dmitry Medvedev. Credit:AP

The Kremlin swiftly revealed tax commissioner Mikhail Mishustin - a virtual unknown in Russia - would be installed as prime minister.

Putin is required to stand down in 2024 under a law limiting presidents from serving more than two consecutive six-year terms. When the same law forced him out of the presidential palace in 2008, he served in the less influential position of prime minister before returning to the presidency.