MOSCOW, Sept 19 (Reuters) - Gazprom said on Monday its subsidiary Gazprom Capital will issue new rouble-denominated bonds to replace sterling-denominated bonds worth 850 million pounds ($970.02 million) due in 2024.

The initial eurobonds were placed in 2017 and carry a coupon of 4.25%.

President Vladimir Putin signed a law in July that gives companies until the end of 2022 to issue bonds in a simplified procedure on the local market.

Proposed by the central bank, the "replacement bonds" would be a substitute for eurobonds that Russian companies can no longer service due to sanctions connected to Moscow's actions in Ukraine.

(Reporting by Reuters; Editing by Jan Harvey)