If the agreement reached yesterday evening is approved by the German government as a whole, "we will be obliged to take measures to avoid disadvantages for Austria and its people", the Austrian government said in a statement.
"We think this is good because now we are getting back down to business", Nahles said after a meeting of coalition leaders in the chancellery.
The proposal could also shift the political crisis south to Austria, where the government said it could take its own measures to protect its borders.
"I would like to make a promise to you: the Austrian presidency will do everything possible so that in the long term we have a Europe without internal borders again", Kurz told MEPs.
The public approval has been largely in favor of Merkel's policies since 2015 but the support started to wane as the country began experiencing problems absorbing the new residents, the Times reported.
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However, after a night of high drama, Seehofer later said he would hold last-ditch talks with Merkel's Christian Democratic Union (CDU) "in hopes of reaching an understanding".
The Forsa poll showed that 54 percent of Germans would have favored a CDU-CSU split over the migration question while 38 percent welcomed the agreement and the unity of the two sister parties. Merkel and Seehofer met on Monday in the office of Bundestag president Wolfgang Schäuble, with Schäuble mediating in the dispute and came to a compromise for the management of migrants coming to Germany and Seehofer said he would stay in his ministerial post.
Then reports emerged from the CSU that Mr Seehofer had offered to step down both as party leader and interior minister.
What did Mrs Merkel negotiate with the EU?
Numbers are sharply down from the peak three years ago.
"For the Christian Social Union (CSU) it is of utmost importance not to lose its credibility.The promise has been that Seehofer would stop immigration of those who are not entitled to go through the asylum procedure in Germany".
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Long angered by the influx of mostly Muslim refugees crossing via Austria into his Alpine homeland, Merkel's hard-line interior minister has threatened to openly defy her in what could end as a spectacular political suicide attack.
The plan was dropped after opposition from the Social Democrats.
However, Italy - where most irregular migrants arrive - does not want to take back migrants who reach Germany.
However, there seems to be little appetite among Social Democrats leaders to oppose the plan this time and trigger another crisis.
He said the two parties should be aware that the far-right Alternative for Germany, which has soared in prominence since a wave of migrants fleeing conflict and poverty headed to Germany in the summer of 2015, stood ready to benefit from a meltdown of the conservatives. About 18,000 had already applied for asylum in another European Union country.
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