The INF Treaty was signed in 1987 between the Soviet Union and the United States on the elimination of intermediate-range and shorter-range missiles.
"It seems that our American partners believe that the situation has changed so much that the US has to have this type of weapons", he said in televised remarks.
"What will be our answer? What's our response? It's simple: in that case we will also do this", he said.
North Atlantic Treaty Organisation said it was now "up to Russia" to save the deal, seen by many as an important part of the global arms control architecture, and alliance chief Jens Stoltenberg said it was time to prepare for its demise.
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President Donald Trump earlier this year announced his decision to withdraw from the INF, which has been described as a cornerstone of global security, accusing Russian Federation and China - which is not a signatory to the treaty - of violating it.
Putin at the time warned that abandoning the treaty and failure to extend another key arms control agreement known as the New START, would unleash a new arms race and put Europe in danger.
But on Monday, the United States leader said he wants talks with Putin and his Chinese counterpart Xi Jinping "to head off a major and uncontrollable arms race".
Gen. Valery Gerasimov, chief of staff of the Russian military, told a briefing of foreign military attaches on Wednesday that if the U.S. "But we also have to start to prepare for the fact that this treaty may break down".
Signed in 1987 by then United States president Ronald Reagan and Mikhail Gorbachev, the last Soviet leader, the INF resolved a crisis over Soviet nuclear-tipped ballistic missiles targeting Western capitals.
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The US effort to exit the treaty was spearheaded by John Bolton, Donald Trump's hawkish national security adviser.
"This was really arms control at its best and therefore it's a really a big setback if this treaty now breaks totally down", he said.
However, Pompeo pointed out that the Trump administration has talked a great deal to the Russian leadership, and while it remains hopeful Moscow will change course, there has been no indication to date that Russia will actually do so.
Mr Pompeo said Russian Federation poses a "direct menace" to the continent for allegedly developing cruise missiles that can be launched from land carrying nuclear warheads - potentially hitting European cities at short notice.
He claims the U.S. has raised the troubling issue with Russian Federation at least 30 times over the past five years but has been met with continued denials and counter-accusations. On Nov. 25, Russian border guards fired on three Ukrainian navy vessels near Crimea, where Russia's Black Sea fleet is based.
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