Malcolm Turnbull has defended a phone call in which he assured Donald Trump the United States isn't obliged to accept a single refugee under a one-off people swap deal.
A leaked transcript of the pair's heated conversation in January provides a rare glimpse into how the prime minister corralled the new president into endorsing the refugee deal.
The agreement, hatched with the Obama administration, involved the US accepting up to 1250 refugees held on Manus Island and Nauru, in return for Australia taking asylum seekers from Central America.
"You can decide to take 1000 or 100. It is entirely up to you," Mr Turnbull told the president, later explaining he could also take none.
"The obligation is to only go through the process."
Mr Turnbull told Mr Trump Australia was willing to take refugees the US did not want.
"We will take anyone that you want us to take," Mr Turnbull told the president.
"We would rather take a not very attractive guy that helps you out than to take a Nobel Peace Prize winner that comes by boat."
His assurances contradict repeated denials by the Turnbull government of any "quid pro quo" tied to the deal.
Quizzed about the people swap on Friday, Mr Turnbull said Australia's relationship with the United States on refugee policy was based on mutual assistance.
"We help the Americans, they help us; it's in the context of a very big relationship of mutual support," he told reporters in Broome.
The prime minister also sought to downplay his admissions about discretion the US has over refugee numbers.
"It has always been subject to American vetting procedures, because that's always been part of the arrangement."
Human rights groups and opposition parties are furious about the transcript, which they say exposes massive holes in the US refugee deal.
Daniel Webb, from the Human Rights Law Centre, said the refugee deal has shown no results.
"Turnbull was clearly more concerned with appearances than reality, totally preoccupied with maintaining the facade of the deal irrespective of whether or not anyone will actually find safety under it," he said on Friday.
Greens senator Nick McKim said the transcript proved the Turnbull government trades refugees like cattle in a market place.
The president praised Mr Turnbull for being "worse than I am" on rejecting refugees, but bemoaned the agreement.
Mr Trump described the agreement as "a horrible deal, a disgusting deal" which would make him look like a "dope" and a weak and ineffective leader.
The US leader feared the refugees would turn into terrorists.
During the phone call, revealed in full by the Washington Post, Mr Turnbull detailed Australia's hardline policy on turning away asylum seekers on boats and detaining them on Nauru and Manus Island.
"That is a good idea," replied Mr Trump. "We should do that too."
More than 1600 refugees have expressed interest in the US resettlement deal, which is expected to offer about 1200 places.
The first refugees are expected to depart for the US in October, while Australia is likely to take about 30 people from Central America in coming months.