"Such a fund would improve the economic climate, [would help] to eliminate the causes of undocumented migration to the EU, preventing the departure of new migrants, as well as facilitating the process of return and reintegration in the homeland," the source said.
The trust fund will amount to more than 1.5 billion euro ($1.67 billion), according to the source.
According to the European Union's external border protection agency Frontex, the total number of refugees detected at the bloc's borders between January and July 2015 stands at over 340,000.
Last week, the head of the UN Refugee Agency, Antonio Guterres, said the EU member states must make "fundamental changes" in their refugee policy, including implementation of larger resettlement programs, humanitarian admission quotas and sponsorship programs.
