Russian president Vladimir Putin on Thursday told outgoing German Chancellor Angela Merkel that the European Union (EU) should "restore contacts" with Belarus to resolve the current migrant crisis, according to a statement by the Kremlin.

Thousands of people are stranded at Belarus' border with Poland, living through freezing conditions in the hope of crossing into the EU.

Western officials have accused Belarus of instigating the crisis by encouraging thousands of migrants fleeing poverty and war-torn areas to try to cross into Poland to undermine EU security.

Putin's remarks come a day after he and Merkel discussed the migrant crisis during a telephone call in which they expressed concern over its humanitarian consequences.

Putin proposed to establish a dialogue between representatives of the EU member states and Minsk to address current problems.

Meanwhile, Belarusian president Alexander Lukashenko earlier on Thursday threatened to cut off the transit of gas to Europe if the EU expanded sanctions.

The EU is reported to be preparing a package of fresh sanction against Belarus.

"We furnish Europe with heat, yet they threaten to close the border. And what if we shut off natural gas there? Therefore, I would recommend that the Polish leadership, the Lithuanians and other empty-headed individuals think before they speak," Lukashenko said according to a quote by BelTA news agency.

The price of gas in Europe rose by almost two percent following Lukashenko's statements, Russian news agency TASS reported citing data from the ICE exchange.

(With input from agencies)