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'The president, in accordance with that deal to honour what had been agreed upon by the US government, and ensuring that vetting will take place in the same manner that we are doing it now, it will go forward,' Mr Spicer said.
The refugees are being held on Papua New Guinea's Manus Island and Nauru.
Now migrants who arrive on Australian shores by sea are immediately sent to the island of Nauru or Papau New Guinea.
They stay in detention facilities while their applications to be accepted into Australia are processed.
White House spokesperson Sean Spicer said the deal had not been confirmed.
He said if it were to go ahead, it would only be because of the United States' 'longstanding relationship with Australia,' The ABC reported.
In response to revelations of the hostile phone conversation, Mr Turnbull remained tight-lipped on Thursday and said that he wasn't going to comment.
Australia has been heavily criticized by the UN for its policy of sending migrants to offshore detention centers.
In November UN investigator Francois Crepeau visited the island of Nauru, where asylum seekers who arrive by boat are sent, and described conditions as 'cruel, inhuman and degrading'.
About 1.30pm (AEDT) on Thursday the US Embassy in Australia released a statement that the deal would go ahead.'President Trump's decision to honour the refugee agreement has not changed and Spokesman Spicer's comments stand,' a spokeswoman said.'This was just reconfirmed to the State Department from the White House and on to this Embassy at Canberra time.'But it came after a morning of mixed messages from various official sources.
On Wednesday it was reported that the White House had backtracked on the asylum seeker deal, saying that President Trump was still considering it.