The move toward closer cooperation, particularly on the military side between Moscow and Caracas, comes in the wake of the Georgia conflict that triggered widespread western condemnation of Russia's intervention.
The offer of support for Chavez, an outspoken critic of Washington, comes days after Russia blocked a meeting amongst foreign ministers of major powers at the United Nations in New York to discuss sanctions against Iran over its nuclear plans.
"We are all ready to look at the possibility of operating in the sphere of peaceful atomic energy," said Putin at the start of late night talks with Chavez at his residence on the outskirts of Moscow.
The United States and the European Union are both reliant on oil and gas imports from Venezuela and Russia. Moscow has also been trying to export both nuclear energy technology and arms.
Chavez called Putin "friend Vladimir" and the two men shook hands warmly and shared a joke.
Chavez hopes plans to deepen military ties with Russia during his two-day visit.
The visit of the outspoken South American leader comes a week after Russian strategic nuclear bombers flew to Venezuela.
"I cannot fail to thank you for the warm welcome extended to the crews of our strategic bombers who spent several days in Venezuela," Putin said.
In a second military maneuver, Russian warships are sailing to the Caribbean for joint military exercises with Venezuela.
Russia has made clear recent military exercises are a response to the United States, which last month sent warships to deliver humanitarian aid to Georgia.