DONALD Trump on praised Russian President Vladimir Putin for refraining from retaliation in a dispute over spying and cyber attacks today.

The President elect's social media message is yet another sign that the Republican plans to patch up badly frayed relations with Moscow.

4 President elect Donald Trump has praised Vladimir Putin's response to Obama's expulsion of Russian diplomats Credit: Reuters

Putin earlier on Friday said he would not hit back for the U.S. expulsion of 35 suspected Russian spies by President Barack Obama, at least until Trump takes office on Jan. 20.

"Great move on delay (by V. Putin) - I always knew he was very smart!" Trump wrote on Twitter.

Obama on yesterday ordered the expulsion of the Russians and imposed sanctions on two Russian intelligence agencies over their involvement in hacking political groups in the U.S. presidential election.

"We will not expel anyone," Putin said in a statement, adding that Russia reserved the right to retaliate.

4 Credit: Twitter / @realDonaldTrump

"Further steps towards the restoration of Russian-American relations will be built on the basis of the policy which the administration of President D. Trump will carry out," he said.

The news comes as Russian PM Dmitry Medvedev openly mocked the outgoing Obama Administration on twitter.

Dmitry Medvedev posted ‘Rest in Peace’ to the Obama administration as boss Vladimir Putin said he would wait to speak to Donald Trump before deciding what action to take over the diplomatic spat.

Trump has repeatedly praised Putin and nominated people seen as friendly toward Moscow to senior administration posts, but it is unclear whether he would seek to roll back Obama's actions, which mark a post-Cold War low in U.S.-Russian ties.

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Trump has brushed aside allegations from the CIA and other intelligence agencies that Russia was behind the cyber attacks.

"It's time for our country to move on to bigger and better things," Trump said on Thursday, though he said he would meet with intelligence officials next week.

U.S. intelligence agencies say Russia was behind hacks into Democratic Party organizations and operatives before the presidential election.

Moscow denies this. U.S. intelligence officials say the Russian cyber attacks aimed to help Trump defeat Democrat Hillary Clinton.

4 Vladimir Putin has said he will not be retaliating by expelling US diplomats from Russia Credit: AP:Associated Press

4 A total of 96 Russians are expected to leave the United States including expelled diplomats and their families following Obama's announcement Credit: AP:Associated Press

Russian officials have portrayed the sanctions as a last act of a lame-duck president and suggested Trump could reverse them when he takes over from Obama, a Democrat.

Russian Foreign Ministry spokeswoman Maria Zakharova called the Obama administration "a group of embittered and dimwitted foreign policy losers."

Should Trump seek to heal the rift with Russia, he might encounter opposition in Congress, including from fellow Republicans.

Republican John McCain, chairman of the Senate Armed Services Committee, has scheduled a hearing for Thursday on foreign cyber threats.

Other senior Republicans, as well as Democrats, have urged a tough response to Moscow.

A total of 96 Russians are expected to leave the United States including expelled diplomats and their families.