Merkel, leader of Germany's Christian Democrats (CDU), was speaking at a press conference here alongside Hungarian Prime Minister Viktor Orban, who is known for his anti-immigration policies. "I am confident that we will reach an agreement with the SPD as well", Seehofer said.
"The refugees who have been registered and have applied for asylum in Italy and Greece, but reach the Austrian border will be moved to transit centers and from there back to Rome and Athens", he said.
German Chancellor Angela Merkel's Conservatives Union on Thursday night reached an agreement on strengthened asylum policies with coalition partner Social Democratic Party (SPD), ending weeks-long dispute that nearly toppled the government.
"It is in the interest not only of Italy, but also Austria and Germany, if the migration pressure on this route is less", Mr Kurz said.
Even though the number of migrants entering Europe this year is down sharply from the past few years, the issue of migration has strained Merkel's governing coalition and divided the 28-nation European Union in general. Such a move, it said, could address Mr Trump's complaint that the United States sector is unfairly treated, while reducing export costs for other participating countries' auto sectors.
"I understand that if you only ever talk about border security, border security, border security that people will say: you only want to seal yourselves off", she said.
The plan is in line with existing European Union rules, but countries on the bloc's outer borders such as Italy have said they're unwilling to take in all the migrants who arrive on their shores.
Almost three-quarters of those surveyed said Seehofer had weakened German conservatives through his brinkmanship, and 78 percent said they were unhappy with the coalition's work.
Now the numbers of such migrants arriving at Bavaria's border with Austria are 10 or fewer daily, the German government says.
Fifty-six percent of Germans felt too much focus was being put on migration, to the detriment of other issues.
Numbers have since dropped sharply but Merkel told parliament that Germans had to be reassured.
Some in the SPD have accused Seehofer of sparking the coalition crisis to corral right-wing voters ahead of the Bavarian state election in October, after hemorrhaging a million voters to the anti-immigrant Alternative for Germany in the national election last September.
The leaders of Germany's three-way governing coalition agreed on a deal concerning migration and asylum policy after German Chancellor Angela Merkel made a deal with Interior Minister Horst Seehofer to introduce tougher controls at Germany's border with Austria.