Russia plans effectively to revive the KGB under a massive shake-up of its security forces, a respected business daily has reported.

A State Security Ministry, or MGB, would be created from the current Federal Security Service (FSB) , and would incorporate the foreign intelligence service (SVR) and the state guard service (FSO), under the plans.

It would be handed all-encompassing powers once possessed by the KGB, the Kommersant newspaper said, citing security service sources.

Like the much-feared KGB, it would also oversee the prosecutions of Kremlin critics, a task currently undertaken by the Investigative Committee, headed by Alexander Bastrykin, a former university classmate of President Putin. The Kremlin has not commented.