This was announced by German government spokeswoman Ulrike Demmer on Wednesday, Censor.NET reports citing Reuters.
Putin said on Tuesday that Russia intended to draft a U.N. Security Council resolution to this end, saying it would help resolve the problem in eastern Ukraine, though he also said preconditions would have to be met before any deployment.
Demmer said any deployment would have to be across the whole area of conflict, not just on the contact line between the Ukrainian army and pro-Russian separatists.
"The president's suggestion is a step," said Demmer, adding many further steps were needed before sanctions could be lifted.
"For a complete lifting of sanctions to be discussed, there would need to be the full implementation of the Minsk cease-fire agreement," she added.
Ukraine believes external peacekeepers from the Organization for Security and Cooperation in Europe (OSCE) should be deployed throughout separatist-held territory and on the sections of the Ukraine-Russia border that are not under Kyiv's control.
Putin also said on Tuesday that any decision by the United States to supply defensive weapons to Ukraine would fuel the conflict.
Ukraine's representative in Humanitarian subgroup of the Tripartite contact group in Minsk talks, deputy speaker of Ukrainian parliament Iryna Herashchenko commented on Putin's statement and said the Kremlin scenarios will fail; peacekeepers must be introduced across all Russia-occupied territories.