President Vladimir Putin on Friday replaced Russia's army chief of staff with a veteran commander from a Chechnya war, in a military shake-up after the dramatic sacking of the defence minister.

Putin announced that army chief Nikolai Makarov has been replaced by General Valery Gerasimov, a commander from the second Chechen war, just days after firing defence minister Anatoly Serdyukov over a graft scandal.

"You are an experienced person," Putin told Gerasimov in a meeting at the Kremlin that also included the new Defence Minister Sergei Shoigu.

"I believe the minister has picked the right candidate and I hope that you will work to the best of your abilities and efficiently," Putin said.

The chief of staff is one of three people in Russia with exclusive access to nuclear launch codes along with the president and the defence minister.

Shoigu described Gerasimov -- who served as first deputy chief of staff between 2010 and 2012 -- as a "military man from head to toe."

He added that Gerasimov enjoyed respect in the army and had "colossal experience working both at the General Staff" as well as "in the field."

A career officer, 57-year-old Gerasimov also served as the commander of the 58th army in the North Caucasus military district in the late 1990s and commanded Russian troops in the 1999-2000 battle against separatists in Chechnya.

The replacement of the army chief of staff was widely expected in the wake of the dramatic departure earlier this week of Serdyukov. Also on Friday, Putin replaced a number of top generals.

Putin had on Tuesday fired Serdyukov over a corruption scandal, the most dramatic change to the government since he returned to the Kremlin for a third term in May amid rising discontent.

Putin said at the time Serdyukov had been relieved of his duties so that a thorough investigation can proceed into a suspected $100 million property scam at a defence ministry holding company.

Serdyukov made many enemies, including top Putin allies like the head of the giant state conglomerate Russian Technologies Sergei Chemezov, as he tried to get Russia's arms manufacturers to produce modern weaponry.

Observers said that Putin had initially backed Serdyukov's army and procurement reforms but eventually took the side of the powerful military lobby.

At the Kremlin meeting Friday, the Russian strongman indicated that the long-brewing conflict over military orders and a failure to back the Russian defence ministry was the real reason for Serdyukov's dismissal.

"We have a problem," Putin told Gerasimov. "The situation in the scientific and technical spheres is quickly changing, and new means of conducting warfare are appearing.

"I expect you together with the minister to organise stable, good, partner-like work with our leading industrial enterprises in the defence industry."

Military analyst Alexander Golts said Putin's words betrayed the real reason for Serdyukov's dismissal. "The military-industrial lobby has won," he told AFP.

Alexei Venediktov, editor-in-chief at Echo of Moscow radio station, said under Serdyukov the defence ministry demanded that Russian arms makers produce new modern weapons, while the military lobby wanted the army to purchase what had already been "made and developed."

Military analyst Pavel Felgenhauer said the arrival of a new team signalled the end of Serdyukov's reforms. "They will try to revive the Soviet army but it's impossible, they do not have the same resources."

Serdyukov's dismissal was very unusual because Putin is widely known for his aversion to high-profile sackings.

Serdyukov, who is a son-in-law of Viktor Zubkov, a former prime minister and top Putin ally, left behind a trail of corruption and personal scandals.

His sacking came on the heels of a probe into a defence ministry holding company and reports that Serdyukov had left his wife for a younger woman at his ministry.

[Image via AFP]