World Bulletin / News Desk

An 11th hour deal clinched by German Chancellor Angela Merkel to rescue her fragile government by limiting migrant arrivals immediately ran into European resistance Tuesday, with neighbouring Austria vowing to "protect" its borders.

A relieved-looking Merkel, who has been in power since 2005, emerged from the late-night negotiations hailing a "very good compromise" that would "control" new arrivals of migrants and asylum seekers while upholding EU cooperation and values.

However criticism from Vienna and her junior coalition partner, the Social Democrats, threatened to throw a spanner in the works just as Germany hoped to emerge from a crippling weeks-long political standstill.

If the agreement reached Monday evening is approved by the German government as a whole, "we will be obliged to take measures to avoid disadvantages for Austria and its people," the right-wing Austrian government said in a statement.

It added it would be "ready to take measures to protect our southern borders in particular," those with Italy and Slovenia.

The remarks raised the spectre of a domino effect in Europe, with member states taking increasingly restrictive measures to shut out refugees.