Russian President Vladimir Putin told his US counterpart Joe Biden on Thursday that he is "convinced" that "effective dialogue" between Moscow and Washington is possible, just hours before phone talks amid rising tensions over Ukraine.

Putin and Biden will speak for the second time in less than a month at 08:30 pm (GMT), in the latest effort to defuse tensions over Moscow's alleged military buildup along Ukraine's border.

"I am convinced that... we can move forward and establish an effective Russian-American dialogue based on mutual respect and consideration of each other's national interests," Putin said in a Kremlin statement containing his holiday greetings to world leaders.

According to a senior US administration official, Biden will say, "We are prepared for diplomacy and a diplomatic path forward."

"But we are also prepared to respond if Russia advances with a further invasion of Ukraine," Biden will tell Putin, the official said.

He also added that "the US will continue to be gravely concerned" by Russian forces near the Ukrainian border.

The phone call comes just days before Russia and the United States meet in Geneva on January 10.

Washington has led the charge in raising concerns about Russian troop movements near ex-Soviet Ukraine, accusing Moscow of planning a winter invasion of its neighbor.

Moscow has denied the charge and stated that it expects the West to agree to broad security demands made earlier this month.

Russia and the United States have many points of conflict besides Ukraine, such as cyberattacks and the staffing of their embassies after several waves of diplomatic expulsions.