Malcolm Turnbull insists relations with the United States remain strong and a refugee deal is still progressing, despite a reported heated conversation with Donald Trump who called the agreement a "dumb deal."
Hours after the Washington Post reported on Thursday that Mr Trump hung up on Mr Turnbull last weekend and described the refugee agreement as the "worst deal ever", the president posted an inflammatory tweet about the agreement.
"Do you believe it? The Obama Administration agreed to take thousands of illegal immigrants from Australia. Why? I will study this dumb deal," he tweeted.
But the prime minister, who was already facing problems before parliament resumes next week over his donation to the Liberal party, insists the US president is committed to honouring the agreement to resettle refugees currently on Nauru and Manus Island.
In their phone call on Sunday, Mr Trump reportedly told the prime minister he'd spoken with four other leaders last weekend - including Russian President Vladimir Putin - and "this was the worst call by far".
He fumed about the deal the Obama administration struck with Canberra to take hundreds of refugees from Nauru and Manus Island, according to unnamed sources quoted by The Washington Post.
It was the "worst deal ever", he told Mr Turnbull.
Mr Trump accused Australia of trying to export the "next Boston bombers".
After Mr Turnbull apparently suggested they move on and talk about foreign affairs, including the conflict in Syria, Mr Trump ended the conversation, the Post said.
The call was scheduled to go for about an hour but Mr Trump ended it after 25 minutes.
Mr Turnbull on Thursday refused to answer questions about the report, saying it was better such talks were conducted "candidly, frankly, privately".
"I can assure you the relationship is very strong," he told reporters in Melbourne.
"The fact we received the assurance we did, the fact that it was confirmed, the very extensive engagement we have with the new administration, underlines the closeness of the alliance."
He dismissed the Post's claim that Mr Trump had hung up on him, telling Sydney radio station 2GB the call "ended courteously."
"I've dealt with many people over the years and I've enjoyed my dealings with President Trump," he said.
"We've had very frank, very forthright discussions in which each of us has expressed our views and I always stand up for Australia's interests."
Labor leader Bill Shorten said Mr Turnbull needed to clarify what was happening with the refugee deal, which the opposition supported.
"It's in the interests of the Australian people for Mr Turnbull just to be straight with the people and tell us what's really going on," Mr Shorten told reporters in Perth.
Meanwhile, the prime minister fended off criticism for not earlier revealing a $1.75 million donation to the Liberal party.
Mr Shorten said it was more evidence the prime minister was "out of touch" as he called for faster disclosure of all donations above $1000, as well as a ban on foreign money.
Mr Turnbull, who is awaiting a parliamentary report on the issue, said he had put his money where his mouth is with the donation.
"I can't be bought by anyone. I'm not a wholly-owned subsidiary of the CFMEU (construction union) like Bill Shorten. I'm my own man and Bill Shorten hates that," Mr Turnbull said.
