Mr Trump tweeted on Saturday that migrants at the US-Mexico border would stay in Mexico until their asylum claims were individually approved in US courts, but Mexico's incoming government denied they had struck any deal. No "Releasing" into the USA.
The potential agreement would break long-standing rules and install new barriers for Central American migrants attempting to reach the USA, the newspaper reported, citing Mexican officials and senior members of president-elect Andrés Manuel López Obrador's transition team.
Moreover, she said Mexico's new government had rejected any deal in which Mexico would be considered "a safe third country" for US asylum applicants. Lopez Obrador will take office on December 1.
Migration activists have long argued that Mexico does not have the security conditions to offer safe haven for migrants feeling violence in Central America.
Tijuana, a city on the US-Mexico border, just across from San Diego, has seen an influx of Central American migrants that had set out in caravans from Honduras and Guatemala in early October hoping to reach the US.
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"For now, we have agreed to this policy of Remain in Mexico", the Post quoted Sanchez Cordero as saying.
Irineo Mujica, who has accompanied the migrants for weeks as part of the aid group Pueblo Sin Fronteras, said the aim of Sunday's march toward the Mexico-US border was to make the migrants' plight more visible to both governments.
Stephanie Leutert, director of the Mexico Security Initiative at the University of Texas at Austin, described the "Remain in Mexico" plan as a strategy to take away the ability of migrants to live and work in the United States while cases are processed. "His party controls the House and the Senate and it is on them", she said, arguing Trump should have worked more closely with Central American countries to prevent the caravans.
Immigration, including recent issues tied to asylum seekers from Central America, was a flashpoint in this month's USA midterm elections and will probably continue to play a key role in the new Congress and in shaping the debate ahead of the 2020 presidential vote.
She said she was considering accepting Mexico's offer to stay and work in Chiapas as a refugee.
But, Sanchez said on Saturday that the next government does not plan for Mexico to become a "Safe Third" country. But agents at the San Diego port of entry process fewer than 100 claims per day.
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Tijuana Mayor Juan Manuel Gastlum on Friday declared a humanitarian crisis in his border city of 1.6 million, which he says is struggling to accommodate the crush of migrants.
As of this weekend, about 5,000 migrants are in Tijuana waiting to enter the USA with majority planning to claim asylum.
"The Trump administration should focus on providing a fair and lawful asylum process in the United States rather than seeking more ways to undermine it".
Mexico's incoming leadership is denying a published report that it had agreed to a Trump administration proposal requiring asylum seekers arriving at the southwest border to wait in Mexico as USA authorities consider their claims for safe haven.
No information was available on whether the woman was planning to claim asylum in the US.
She said Trump had chosen "to weaponize" and "politicize" the situation, but "has an opportunity here, especially with a new Congress coming in, to get this done". "We come for an opportunity!" They have also distributed thousands of blankets, thin mattresses and personal hygiene kits.
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His tweets were interpreted as possible confirmation of the alleged deal between the USA and Obrador's administration.