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By Henry Meyer and Sebastian Alison

July 9 (Bloomberg) -- Russia is ``extremely disappointed'' that the U.S. signed a deal to deploy part of a missile-defense system in the Czech Republic and will respond appropriately, President Dmitry Medvedev said.

``We won't become hysterical about this, but we'll consider how to respond,'' Medvedev told reporters in Toyako, Japan today after a meeting of leaders of the Group of Eight industrialized nations.

The Russian leader said the agreement to host a radar tracking station, signed in Prague yesterday by the U.S. and Czech foreign ministers, represented a ``new stage'' in the development of the planned U.S. missile shield.

U.S. Secretary of State Condoleezza Rice told reporters in Sofia that Russia's reaction to the agreement is ``disappointing'' given U.S. efforts ``to offer to the Russians significant ways of transparency and confidence-building measures and full cooperation.''

Russia warned yesterday that it may respond militarily to the deployment of the U.S. system.

``If a U.S. strategic anti-missile shield is deployed near our borders, we will be forced to react not in a diplomatic fashion but with military methods,'' the Russian Foreign Ministry said in a statement on its Web site. The radar deal must be ratified by the Czech parliament, the ministry said.

No Progress

Medvedev and U.S. President George W. Bush made no progress toward resolving their differences on the missile shield during their meeting at the G-8 summit.

White House press secretary Dana Perino said Bush repeated to Medvedev in their meeting that the system is intended to thwart an attack from Iran and is not aimed against Russia.

``We want to work together with the Russians and the Europeans on a joint partnership,'' Perino said, adding that Bush and Medvedev have agreed to continue talks on the system.

Medvedev has maintained Russian opposition to the missile shield since he came to office in May. Russia has threatened to aim nuclear missiles at the planned bases in the Czech Republic and Poland, Interceptor missiles would be based in Poland, which is still in negotiations with the U.S.

The Russian Foreign Ministry said its proposal for the creation of a ``truly collective missile-defense system'' had been ``ignored'' by the U.S.

To contact the reporter on this story: Henry Meyer in Toyako, Japan, at hmeyer4@bloomberg.net; Sebastian Alison in Moscow at Salison1@bloomberg.net