Russia wants to set up a satellite ground station in Palau as part of its global navigation network.
Russia's ambassador to Palau, Igor Khovaev, said the country is geographically in a good location for the station.
He told the Island Times that both Russia and Palau could use it for air and maritime navigation.
There are currently 23 operational satellites in Russia's Global Navigation Satellite System (GLONASS), which is seen as a competitor to the widely-used US-backed Global Positioning System (GPS) and China's BeiDou system.