The United States and Australia are close to announcing a deal in which the US would resettle hundreds of asylum seekers banished by Australia to Pacific island camps, a newspaper reported on Friday.

The US had agreed to accept up to 1,800 refugees held for up to three years at Australia's expense in camps on the impoverished island nations of Nauru and Papua New Guinea, The Australian newspaper reported.

Such an agreement struck with the Obama administration could be opposed by President-elect Donald Trump, who has called for a moratorium or tight restrictions on Muslim immigration. Most of the asylum seekers are Muslims from the Middle East, Africa and Asia.