"We have received instructions at the Foreign Ministry and we will cut diplomatic relations with the Russian Federation," Deputy Foreign Minister Grigol Vashadze told reporters.

Russia recognised South Ossetia and Abkhazia on August 26 after rolling tanks and troops over its southern border to repel a Georgian offensive to retake South Ossetia.

In its initial response, Tbilisi had said it would recall all but two diplomats from its embassy in Moscow.

"Georgia's interests in Russia will be represented by the embassy of a third party," Vashadze said, adding that consultations were underway with several countries. He said a consul, vice-consul and technical staff would remain in Moscow.

Russia's Foreign Ministry said that Moscow regretted Tbilisi's decision to cut ties, Interfax news agency reported.