The European Union has announced unprecedented plans to provide Greece and other member states with 700 million euros ($1 billion) in emergency humanitarian aid to cope with the migrant crisis.

Key points: EU announces $1 billion migrant aid plan

EU announces $1 billion migrant aid plan Greece expected to receive majority of funds

Greece expected to receive majority of funds Thousands of asylum seekers stranded at the Greece-Macedonia border

Thousands of asylum seekers stranded at the Greece-Macedonia border Turkey signs readmission agreement

The funds will be allocated over three years, with 300 million euros ($451 million) in 2016, and 200 million euros ($300 million) in each of the following years, EU humanitarian aid commissioner Christos Stylianides said.

"No time can be lost in deploying all means possible to prevent humanitarian suffering within our own borders," Mr Stylianides said in a statement.

"Today's proposal will make 700 million euros available to provide help where it is most needed."

If approved by member states and the European Parliament, the plan by the European Commission, the EU's executive arm, would amount to the bloc's first distribution of humanitarian cash within Europe rather than outside the bloc.

The aid plan will also be coordinated for the first time with UN and other aid agencies, the Commission said.

Greece has asked for about 480 million euros ($723 million) to help shelter 100,000 refugees who have reached its shores in the biggest influx since World War II.

Germany's European Commissioner Gunther Oettinger told ZDF TV earlier he expected Greece to receive hundreds of millions of dollars.

A Greek source said that about half the aid Athens is seeking from the EU would go on accommodating 50,000 refugees in camps while the rest would go on hotels and lodgings.

Greece said looking after the asylum seekers required around 8,200 officials, including police, firemen, medical staff, field workers and translators.

While Greece remains the main entry point for migrants — 1.13 million of whom have entered the EU since the start of 2015 — the effects have been felt across Union.

The plan for an internal aid mechanism marks a departure for the 28-nation EU, which normally only gives aid to countries outside the bloc, notably in the Middle East and Africa.

Thousands of migrants are awaiting passage at the Greece-Macedonia border after the frontier was closed. ( AFP: Robert Atanasovski )

Thousands face wintry conditions at Greece-Macedonia border

Macedonia allowed some 170 refugees to cross its border with Greece as 10,000 more were left waiting at the border in miserable conditions, Greek officials said.

It was the first group of Syrians and Iraqis permitted to continue their desperate journey to Europe since dawn on Monday, when another 300 were let through before the frontier was closed.

The border closure was greeted with anger as hundreds tried to break through the fence but were blocked by Macedonian police who fired tear gas at them, prompting an angry response from the EU.

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Since then, Macedonia has deployed additional police and troops to the border as a "protective" measure, officials said.

At the Greek border crossing of Idomeni, local officials said there were 7,000 people in two camps operated by aid groups, with another 3,000 camping in surrounding fields.

Over the past few days, aid groups have reported a shortage of food and tents, warning that the wet weather was taking a toll on the refugees, many of whom have children.

"We have been waiting for six days," said Farah, a 32-year-old Syrian, as a van distributing canned food and long-life milk was quickly mobbed and emptied in minutes.

"The food is not enough, everyone is lying to us and we are desperate."

Meanwhile Turkey offered to sign readmission agreements with 14 countries, a move which would enable it to more quickly take back migrants rejected by the EU.

The EU agreed a 3 billion euros ($4.5 billion) aid deal with Turkey to help it shelter refugees mainly from the Syrian civil war, in return for preventing them travelling on to Europe.

AFP/Reuters