The deal, signed in Berlin by German Interior Minister Thomas de Maiziere and his Greek counterpart Michalis Chrysochoidis, includes an exchange programme between the German and Greek ministries responsible for asylum issues.

The countries also aim to cooperate on the European Union's so-called Dublin Procedure, which determines which country should process an individual's asylum claim.

As a rule, asylum claims should be processed by the first EU country a refugee arrives in, as the European authorities wish to prevent asylum seekers from being shunted between EU countries.

Greece has become the main transit point for immigrants seeking entry into the European Union, due to the country's position at the crossroads of three continents - Europe, Africa and Asia.

Refugee advocates and human rights groups, such as New York-based Human Rights Watch, have criticized Greece for its treatment of migrants, accusing the country of illegal deportations and misleading migrants about their right to apply for asylum.

In 2008, fewer than 1 per cent of the 25,000 people who applied for asylum from the Greek government were successful, far below rates of 18 per cent in Germany, 11 per cent in Italy and 4 per cent in Spain.

Last year, Greece announced plans to set up an independent agency to process the huge backlog of asylum applications.

Germany's Federal Office for Migration and Refugees already contains liaison officers from the Netherlands, Belgium and Great Britain, while German officers work in France, Britain, Italy and Hungary.