The 45th president of America said Mr Putin’s decision not to ban US officials from Russia, despite Barack Obama kicking 35 Russian officials out of America, was a “great move”.
Instead, Mr Putin said in a statement he would wait on making a move until Mr Trump takes power next month.
Mr Trump Tweeted to his 18.2 million followers on Friday evening: “Great move on delay (by V. Putin) – I always knew he was very smart!”
He followed former Nigel Farage in complimenting the long-standing leader, after the former Ukip leader said Mr Putin was “mature”.
Mr Farage Tweeted: “Pleased to see a mature response from Putin. A @realDonaldTrump presidency can’t come soon enough.”
This came after Obama banished 35 Russian officials from the country.
While the Kremlin were furious at the decision, they decided against a tit-for-tat response.
Instead, Putin promised not to “create problems” – and even invited the children of US officials to a state-sponsored party.
He said: “Although we have the right to retaliate, we will not descend to the level of ‘kitchen’, irresponsible diplomacy.
“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.
“We will not create any problems for US diplomats. We will not expel anyone.
“Moreover, I invite all children of American diplomats accredited in Russia to the New Year and Christmas party in the Kremlin.”