German Chancellor Angela Merkel has announced that Berlin will give its regional states extra funding to deal with an influx of migrants, Deutsche Welle reported Friday.

The government says it plans to pay 670 euros per new arrival, per month.

The German government and regional states thrashed out a package of measures on dealing with the influx, with central government promising to shoulder the main financial burden in future.

Under the plan, lauded by Merkel as a "decisive turning point," more money would flow to each state depending on how many people arrive.

The agreement reached on Thursday stipulates that each of the 16 states will receive 670 euros per asylum seeker, per month. That money would then be passed on from the state to the individual communities where migrants and refugees are housed.