Palau's Minister of State Office says it is considering Russia's offer to establish diplomatic ties between the two countries.
Last week Russian media had reported President Vladimir Putin had signed a decree to do so.
The Minister's public affairs spokesperson Salvador Cellames says he has spoken to the minister Temmy Shmull about it.
"From what we discussed together he said during his last trip to the United Nations he met with the Russian embassy and they responded through their email that they want to establish a diplomatic ties with Palau. So our minister says they will be in the process of doing that."
Palau's Director of Foreign Affairs Isaac Soallavaob says any decree to establish formal diplomatic ties with Russia has not been officially announced in Palau.
He says usually forming diplomatic ties has to go through the Ministry of Foreign Affairs overseas ambassadors or the President's office.
But he says Palau is open to the idea.
We would like to establish diplomatic relations with as much country in the world as possible. We're a friendly nation and we look to establish diplomatic relations with countries with which we share the same concern.