Trains and road crossings between Austria and Germany have been closed after Munich said it was struggling to cope with the huge influx of people arriving in the city.
Approximately 13,000 refugees arrived in Munich yesterday, calling for temporary border checks and the suspension of the Schengen Agreement, the treaty which allows people to travel freely within participating European countries.
Austian newspaper Kronen Zeitung reported that German police will check migrants to 'determine who is entitled to asylum'. There was no mention of how these checks would be made.
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The announcement comes just weeks after Germany was hailed as a shining example for its response to the refugee crisis, after it said it expected to take in 800,000 refugees.
Germany's Interior minister, Thomas de Maiziere, said that the country remains the top destination for refugees in Europe, receiving 43% of all asylum applications in the 28-nation European Union.
He said more than 360,000 migrants have arrived in Germany this year, including a record of 83,000 in July, adding that Europe needed to come up with a better way to share the burden.
David Cameron said the UK would “live up to its moral responsibility” and take in up to 20,000 people who have been forced from their homes by the forces of the Syrian president, Bashar al-Assad, and the Islamic State terror group (also known as Isis, Isil or Daesh).
He said: "We will continue to show the world that this is a country of extraordinary compassion always standing up for our values and helping those in need."