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Dmitry Rogozin, the hawkish Russian ambassador to Nato, said Nato should cancel the exercises."Nato needs to show flexibility and hear our arguments. The worst thing is that this organisation is becoming more and more unpredictable," he said. "Nato's behaviour is not decent, stable or appropriate."

The exercises take place against the backdrop of a growing military buildup on both sides of Georgia's tense and disputed borders with the breakaway republics of South Ossetia and Abkhazia.Russia has beefed up its military presence in both territories, and last week signed an agreement giving its army full control of border security.

The EU and Nato have strongly protested against the move, saying it is in breach of a peace agreement signed last August by Russia's president, Dmitry Medvedev, and the French president, Nicolas Sarkozvy.Under the deal, Medvedev promised to pull Russian troops back to their positions before last summer's war over South Ossetia.

Saakashvili's position in Georgia, meanwhile, is increasingly under threat following a series of protests by the country's opposition.Opposition leaders have dismissed yesterday's apparent army mutiny as a fabrication by Saakashvili designed to discredit his internal enemies.

Today's exercises involve more than 1,000 soldiers from a dozen Nato member states and partner nations.Several countries, including neighbouring Armenia, have recently pulled out of the exercises, apparently fearing Russian displeasure.

But UK Foreign Secretary David Miliband told the BBC that it was not "business as usual" with Moscow. Mr Miliband said the resumption of ties would provide an opportunity to engage with Moscow "in a hardheaded way". He said "the invasion of Georgia and continuing infringement of its sovereignty" could not be "swept under the carpet".

Mrs Clinton added that Nato "should continue to open Nato's door to European countries such as Georgia and Ukraine and help them meet Nato standards".

Earlier, Russia's envoy to Nato defended the war against Georgia and said any new relationship with Nato would be on Moscow's own terms.

Some, like Germany and France, had long been pressing for the resumption of ties with Russia, arguing that their suspension has been counter-productive.

Dmitry Rogozin, Russia's permanent envoy to Nato, predicted an outcome of the Brussels talks "that should, on the whole, satisfy Russia" but made clear he saw Moscow negotiating from a position of strength. "We came out of the crisis that we had after the August 2008 events [the war with Georgia], the crisis in the South Caucasus, stronger," he told Russian channel Vesti TV. "Our Western colleagues saw in Russia a partner that one cannot wipe one's feet on. We are strong... and we are restoring cooperation, including on our terms."