Denmark's minister for immigration and integration Inger Støjberg was in Vienna on Thursday as the two countries presented their plan for reforms to the EU's asylum system.
Austria and Denmark plan to launch a pilot project establishing a deportation centre based outside the EU for rejected asylum seekers.
The two countries have been engaged in negotiations over the proposed centre since early this year.
Aims of the project include providing shelter to refugees closer to their home countries and to disrupt people smuggling operations.
Støjberg spoke about the envisaged system with Austrian interior minister Herbert Kickl on Thursday.