European Union (EU) countries who refuse to take in their allocation of migrants may face fines of up to 250,000 Euros ($287,304) per refugee.
The new legislation, reported by the Financial Times, is likely to be the most disputed out of several proposals to be announced Wednesday in Brussels at the European Commission.
It is part of a revision to the so-called Dublin asylum regulation, and is the EU's biggest push to rescue a process struggling to cope with the million-plus migrants to have arrived in Europe in the last year, according to the FT.
In 2015, 1.3 million people sought asylum in Europe, said Eurostat. The majority come from Syria, with Afghanistan and Iraq following closely behind.
European governments have been facing increasing calls to curb the number of migrants entering the EU. The number of migrants to cross the Mediterranean fell 59 percent last month compared to April 2015, according to the United Nations.