Europe trade deal talks for 2017

Negotiations on a European Union free trade agreement are expected to start in 2017.

Prime Minister Malcolm Turnbull discussed the deal, and the Syrian refugee crisis, with European Commission president Jean-Claude Juncker and European Council president Donald Tusk on the sidelines of the G20 summit in the Turkish resort city of Antalya.

"This is a very important day as the European Union begins its internal process of framing the negotiating position it will take to the discussions with Australia from early 2017 ... towards a European-Australian free trade agreement," Mr Turnbull told reporters after the meeting.

Mr Juncker told reporters after the meeting the European Union was undertaking an impact assessment ahead of a decision to enter into formal negotiations.

He said the aim was to finalise the negotiation "mandate" in 2017, which is required from EU countries before the talks can start.

The EU accounts for about a quarter of global GDP, covering 28 countries and more than 500 million people.

The leaders also discussed the refugee crisis in Europe, with Mr Juncker praising Australia for its plan to permanently resettle 12,000 people.

"I would like members of the G20 to follow that brilliant Australian design," he said.