Russia has shut down its Gabala radar station in Azerbaijan, which it earlier offered to share with the United States, due to lease price disagreement, Azerbaijan's foreign ministry said on Monday.

"On December 10, the Russian side sent a note to Azerbaijan that effective December 9 it is halting the agreement on the status and terms of functioning of the Gabala radar station," Azerbaijan's foreign ministry said in a statement.

The ministry said Azerbaijan was keen to reach a deal with Russia that would allow it to continue using the station, but the two countries "have failed to agree on the lease price."

Moscow suggested in 2007 that the United States could share the monitoring station instead of establishing new sites for missile defence systems in eastern Europe.

But the then US administration under former president George W. Bush did not follow up on the offer.

Russia leased the radar station from Azerbaijan, a former Soviet republic, in a deal signed in 1991 after the break-up of the Soviet Union.