Donald Trump called Malcolm Turnbull's immigration policies "worse" than his own hardline approach during a heated phone call between the pair in January, a leaked transcript has revealed.

Key points: Washington Post leak of Donald Trump and Malcolm Turnbull's January phone call reveals tense exchange

Washington Post leak of Donald Trump and Malcolm Turnbull's January phone call reveals tense exchange Mr Trump told Mr Turnbull a deal for the US to take on refugees headed for Australia was "ridiculous", "rotten" and "stupid"

Mr Trump told Mr Turnbull a deal for the US to take on refugees headed for Australia was "ridiculous", "rotten" and "stupid" Mr Trump ended the call after telling Mr Turnbull "this is the most unpleasant call all day"

The Washington Post has obtained a transcript of the call, which became heated as the two men discussed the deal for the US to resettle refugees from Manus Island and Nauru in exchange for Australia accepting central American refugees from the US.

The White House is refusing to comment on the transcript, but a spokesperson said it was a "national security matter when phone call transcripts are being leaked out".

A transcript of the call between Mr Trump and Mexican President Enrique Pena Nieto was also released.

"This is a big deal. It is really, really important to us that we maintain it," Mr Turnbull said, according to the transcript.

Mr Trump insisted the deal, brokered under the Obama administration, would make him look like "a dope" after he had proposed a ban on refugee resettlement in the US.

Mr Turnbull repeatedly stressed that Mr Trump did not have to actually accept any of the individuals on Nauru or Manus Island to honour the deal, saying he only had to vet them for resettlement.

"Suppose I vet them closely and I do not take any?" Mr Trump asked later in the call.

"That is the point I have been trying to make." Mr Turnbull replied.

"How does that help you?" Mr Trump asked.

"Well, we assume that we will act in good faith," Mr Turnbull said.

Sorry, this video has expired In February, Malcolm Turnbull was tight-lipped about the nature of the call

Mr Turnbull asked him to honour the deal as a deterrent to people smugglers and repeatedly explained Australia's immigration policy to the US leader.

"It is not because [the refugees] are bad people. It is because in order to stop people smugglers we had to deprive them of the product," Mr Turnbull said.

Leak of 'hostile' transcript unusual It is highly unusual for the transcript of a phone call between two leaders to be leaked to the press. "When you read the full transcript here it's so acrimonious, there's so much anger and hostility," Washington Post correspondent Greg Miller — who broke the story — told the ABC. "For Trump this is all about perceptions and how this reflects on him — he's not talking about the plight or fate of these individuals," he said, referring to the refugees the deal applies to. "Turnbull maybe comes off a bit better but also he's not fighting for these displaced individuals, he's fighting to preserve this deal that he has to hold together to empty these detention centres," he said. Mr Miller said the transcript showed Mr Trump had a minimal grasp of the agreement. "He doesn't know the numbers on this deal accurately — he talks about up to 5,000 which is not what the terms call for — he doesn't understand where they come from, doesn't understand why they're there, doesn't understand why they can't admit them and doesn't understand the broader context of the relationship here and how Australia in this case is relying on the United States to take a problem off its hands," he said.

"The problem with the boats it [sic] that you are basically outsourcing your immigration program to people smugglers and also you get thousands of people drowning at sea."

Mr Turnbull explained that even a "Nobel Prize-winning genius" who arrived by boat would not be resettled in Australia.

Mr Trump then expressed admiration for the Australian policy.

"That is a good idea. We should do that too. You are worse than I am," he said.

In exchange for sticking to the deal, Mr Turnbull promised to take more refugees the US did not want to resettle.

"We will take more. We will take anyone that you want us to take.

"The only people that we do not take are people who come by boat."

The President repeatedly referred to the refugees on Manus Island and Nauru as being "in prison" as Mr Turnbull tried to reassure him they were not "bad people".

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"They are basically economic refugees from Iran, Pakistan and Afghanistan," Mr Turnbull said.

"The only reason we cannot let them into Australia is because of our commitment to not allow people to come by boat. Otherwise we would have let them in. If they had arrived by airplane and with a tourist visa they would be here."

Throughout the call Mr Trump called the deal "ridiculous", "rotten", and "stupid".

Mr Trump said reports the conversation had been tetchy were "fake news". ( AP: Pablo Martinez Monsivais )

Mr Turnbull repeatedly pushed the President to uphold the US side of the deal and tried to give Mr Trump advice on how to save face while still honouring the agreement.

"I think that what you could say the Australian Government is consistent with the principles set out in the executive order," Mr Turnbull said, referring to the President's refugee ban.

"No, I do not want to say that," Mr Trump replied.

During the phone call Mr Trump showed a limited understanding of both the deal and broader immigration policies.

"What is the thing with boats? Why do you discriminate against boats? No, I know, they come from certain regions. I get it," he said.

Mr Trump became increasingly frustrated and vented at how the deal would make him look politically.

"I will be seen as a weak and ineffective leader in my first week by these people. This is a killer," he said.

Later in the call Mr Trump reiterated his frustrations with the Prime Minister.

"I have had it. I have been making these calls all day and this is the most unpleasant call all day. Putin was a pleasant call. This is ridiculous," he said.

According to the transcript, Mr Turnbull tried to turn the conversation to less controversial topics including Syria and North Korea.

Mr Trump replied, "this is crazy" and the call abruptly ended after brief goodbyes.