By Richard Galpin BBC News, Moscow

Sergei Ivanov and Vladimir Putin were both in the KGB

Russian President Vladimir Putin has promoted a close ally - defence minister Sergei Ivanov - to the post of first deputy prime minister.

The reshuffle comes just over a year before presidential elections are due.

The promotion is likely to be seen as confirmation that Mr Ivanov is one of two leading candidates to become Russia's next president.

Russia has been waiting for signals from Mr Putin about who he will back in next year's presidential election race.

In the spotlight

Mr Putin is so powerful that whoever he anoints is highly likely to win the election.

Moving Mr Ivanov from defence should help his presidential ambitions... given the many problems facing the Russian army

Earlier this month he told journalists he would not make a public statement until campaigning officially begins in December.

By promoting Mr Ivanov from the defence ministry, Mr Putin is sending clear signals that he is on an equal footing with the other first deputy prime minister - and leading presidential hopeful - Dmitri Medvedev.

Mr Ivanov is very close to Mr Putin. They are both from St Petersburg and were both in the KGB.

Analysts believe that moving Mr Ivanov from defence should help his presidential ambitions.

Being defence minister is not a popular position, given the many problems facing the Russian army - in particular, the bullying of conscripts.