Vladimir Putin will not be closing an American school in Moscow, Russian officials have said, countering an earlier report from CNN.

After President Obama announced a new round of sanctions against the Russian government on Thursday, CNN reported that Putin was closing an Anglo-American school in Moscow as retribution.

But the Kremlin denied the report on Friday, as Putin decided against diplomatic reprisals against the U.S.

The school described in the false report is a private English-language K-12 school in Moscow, attended mostly by the children of American, British, and Canadian diplomats. The children of wealthy Russian families also attend the school. In all, about 1,200 students are educated at the school, from 60 different countries.

Vladimir Putin (pictured on Wednesday) will NOT be closing an American school in Moscow, as previously reported by CNN

Right after Obama's speech, announcing the sanctions on Thursday, Putin's spokesman said the government was considering retaliatory steps.

But on Friday, Putin decided against the move - mocking Obama by inviting the children of U.S. diplomats to the Kremlin for a holiday party and saying he would wait to make a decision until Donald Trump takes office next month.

Putin's officials launched a tirade of abuse at Obama and his administration, calling them 'angry and shallow brained losers', while a senior member of the Russian parliament called the president a 'political corpse'.

It was previously reported that Putin's government would be closing the Anglo-American School of Moscow. The Kremlin said on Friday that the report was false

About 1,200 students from 60 different countries take classes at the school. Pictured is a visitor conducting a lesson in a classroom with students at the school

Obama imposed sanctions on Russian officials and intelligence services in retaliation for Russia's alleged hacking of American political sites and email accounts ahead of the November election.

Putin's spokesman Dmitry Peskov on Thursday reiterated that Russia was not involved in the hacking.

Donald Trump responded to the sanctions, saying it is 'time for our country to move on to bigger and better things.'

President Obama's strongly-worded statement about sanctions against Russia is his most sweeping action against the Kremlin during his eight years in office

It echoes comments he has made publicly and on Twitter since both the CIA and FBI agreed Russia was involved in hacking during the election campaign.

But he added he'll meet with U.S. intelligence officials next week 'in order to be updated on the facts of this situation.'

Kellyanne Conway then questioned whether the sanctions are being put in place to make life difficult for her boss.

'I will tell you that even those who are sympathetic to President Obama on most issues are saying that part of the reason he did this today was to quote "box in" President-elect Trump,' Conway said on CNN.

'That would be very unfortunate if politics were the motivating factor here. We can't help but think that's often true.

'All we heard through the election was "Russia, Russia, Russia". Since the election, it's just this fever pitch of accusations and insinuations.'

However, despite Trump's comments, Obama has found allies within the Republican Party who celebrated his move.

Senate Majority Leader Mitch McConnell the sanctions 'a good initial step, however late in coming.'

Russian President Vladimir Putin (L) talks to US President Barack Obama (R) during a meeting at the sidelines of the G20 Summit in Hangzhou, China, in September 2016

He then went on to accuse Obama of allowing Russia to 'expanded its sphere of influence', over the past eight years.

McConnell said, 'The Russians are not our friends' and is promising that Congress will review accusations that Moscow interfered in the U.S. election.

He added Congress will 'work to ensure that any attack against the United States is met with an overwhelming response.'

Republican Senators John McCain and Lindsey Graham also said sanctions against announced by the Obama administration are 'a small price' for Russia to pay for interfering with U.S. elections, adding they will lead efforts in Congress to impose stronger punishments.

McCain, of Arizona, and Graham, of South Carolina, called Russian cyberattacks on the 2016 election a 'brazen attack on American democracy' and say retaliation measures announced Thursday by Obama are long overdue.

Russian officials have denied the Obama administration's accusations that Putin's government was involved at the highest levels in trying to influence the U.S. presidential election.