Speaking with the Russian President on a visit to Moscow Mr Steinmeier told Mr Putin both sides needed to work to improve their relationship.
Mr Steinmeier said: “It’s essential that we use this opportunity for us as presidents to continue our dialogue to try to improve out bilateral relations, the state of which we can’t be happy about.
“I’m convinced we need to resist the alienation that has grown between our countries in recent year and to do that we need to continue dialogue, and need long-term attempts from both sides to find solutions in crises.”
Relations between the two nations have remained terse due to the annexation of Crimea and and German accusations of Russian meddling in politics, which Mr Putin’s government denied.
As such, Mr Steinmeier’s visit to Moscow is the first trip of its kind by a German President since 2010.
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The German President has long called for increased engagement with Moscow, and has advocated the easing of EU sanctions against Russia over events in Ukraine.
His SPD party, Angela Merkel’s former coalition partners who are now going into opposition after a spectacular election defeat, has also advocated reducing harsh measures against the Eastern giant.
Mr Steinmeier is also behind a disarmament initiative designed to push Russia and the US into reducing their arsenals of conventional weapons.
The President’s overtures to Russia mark a significant change for the German government.
However they do not speak for Mrs Merkel, who has resisted calls to ease sanctions.
Any new policy on Russia will not be announced before coalition talks begin in late November as Mrs Merkel will need to consent of all parties within her new government.
She is expected to form a Jamaica coalition with the liberal FDP and the Green party. The latter have backed a hard-line stance against Moscow over Crimea and its support for the Syrian government.