Over the years, Mishustin "has created a cutting-edge tax service from the ground up, using modern technologies and (means of) digital economy", said Vyacheslav Volodin, the speaker of Russia's lower house of parliament.
Alexi Navalny, Russia's most outspoken opposition leader, tweeted that "remaining the sole leader for life, taking ownership of an entire country, and appropriating wealth to himself and his friends is the only goal of Putin and his regime".
"Not everything was done, but everything never works out in full", the President said, according to TASS.
Putin's choices for prime minister and other top jobs will be closely watched for hints that a successor is being groomed. Since 1999, Putin has continuously been in power, either as prime minister or president - from August 9, 1999 to May 7, 2000 as PM; May 7, 2000 to May 7, 2008 as president; May 7, 2008 to May 7, 2012 as PM again; and since May 7, 2012 as president.
"I believe it right for the government of the Russian Federation to step down in conformity with Article 117 of Russia's Constitution", Medvedev said.
The surprise announcement came after Putin proposed constitutional amendments that would strengthen the powers of the prime minister and parliament at the expense of the presidency. The president now holds the authority to make those appointments.
"It will increase the role of parliament and parliamentary parties, powers and independence of the prime minister and all cabinet members", Mr Putin said during his televised speech.
The last referendum was held in 1993 to ratify the Constitution of Boris Yeltsin, Putin's predecessor.
Putin emphasised that the constitutional changes must be put to a nationwide vote.
Putin, 67, has led the country for more than 20 years, the longest since Soviet authoritarian leader Josef Stalin.
Priyanka Chopra and Richard Madden team up for Russo Brothers' 'Citadel'
According to a report in Variety, the announcement was made on Tuesday at the Television Critics Association winter press tour. On the work front, Patineeti is now working on "The Girl On The Train", which is slated for release on May 8.
Under Putin's plan, the lower house of parliament will be granted the power to appoint the prime minister and the rest of the cabinet, as opposed to approving candidacies, which is now the case.
"All further decisions will be taken by the president".
"Dmitry has always been dealing with these issues", Putin explained.
Putin's critics have suggested that he is considering various scenarios to remain in power after 2024, including the option of becoming prime minister with extended powers.
Putin tapped Mikhail Mishustin for the role as part of a series of bombshell announcements on Wednesday, which sparked speculation that Russia's longtime leader could be preparing his own political future.
Some analysts have theorized that Putin may try to continue pulling the strings as head of the council after stepping down as president in 2024.
Analysts said Putin was laying the groundwork for potential changes to a system in place since the early 1990s.
Mr. Putin has asked him to become deputy head of the National Security Council.
Is Mr Putin trying to be in power forever?While in office, Medvedev raised the presidential term from four to six years.
Russia's Prime Minister Dmitry Medvedev speaks during an annual interview to Russian TV channels in Moscow, Russia Dec 5, 2019. Some of Putin's associates suspected Medvedev's aides of encouraging the protests.
Putin also emphasised the need to amend the constitution to give it a clear priority over worldwide law. This is the longest term in this position in the recent history of Russian Federation.