"We still do not have a grip on the whole migration issue", Seehofer said.
Merkel said she was optimistic her government and parliament would back the proposed reforms.
While his party supports a European solution, he added, he wants to be ready to begin turning back any migrant whose asylum process is pending in another European Union country, or who has been registered as arriving there. Seehofer - then the governor of Bavaria, where most migrants first entered Germany - became a leading critic of her welcoming approach. But she was also adamant the only way to do so was through a joint European Union policy and individual deals with countries where migrants first go.
Hours after President Donald Trump tweeted crime in Germany is "way up" because Europe is "allowing millions of people in who have so strongly and violently changed their culture", the German government provided Newsmax with figures sharply contradicting this claim.
Merkel now faces a risky mutiny from her hardline Bavarian Interior Minister Horst Seehofer, who has vowed to defy her and order police to shut German borders to most asylum seekers by early July absent an European Union accord.
Angela Merkel could be ousted as Chancellor by next week if she doesn't come up with a plan for the migrant crisis, a German MP claims.
Merkel, the EU's longest-serving leader, welcomed Monday's compromise in a dispute that has threatened to unravel her new coalition, and said her Christian Democrat (CDU) party would decide how to proceed after the two-week deadline elapsed.
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"Member States should take all necessary internal legislative and administrative measures to counter such movements and to closely cooperate amongst each other to this end", the text said in an indirect response to German Interior Minister Horst Seehofer.
Merkel said she would seek agreement with European nations at a June 28-29 EU summit, but stressed there was "no automatism" about rejecting asylum seekers if no deals are reached.
Though Merkel had been lukewarm on Macron's idea of a European budget, in a declaration adopted by both leaders following the meeting they said they had agreed upon a proposal to establish one aimed at "competitiveness and convergence".
Merkel has long insisted that migration is a Europe-wide problem that can be solved only through a Europe-wide agreement, and that adopting Seehofer's position would spell the end to freedom of movement throughout the European Union, a cornerstone of membership in the bloc.
Analysts at Deutsche Bank suggest that the German political drama was the main story in Europe yesterday where Chancellor Merkel was forced into considering concessions to stave off a potential political crisis. "A much faster turnaround on asylum seekers", Kelly told National Public Radio during a controversial interview in which he argued that undocumented migrants would not be able to easily assimilate into American society because "they don't have skills".
She also agreed to the request of the party to impose a ban on the admission of migrants, previously expelled from Germany.