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6 year oldAnnounced by the Departments of Justice and Homeland Security, the ruling would stop asylum for those who breach any presidential restriction on entry.
The president can stop migration in the "national interest", a statement said.
Immigration was a major focus in President Trump's 2018 mid-term election campaign.
Frequently attacking a caravan of thousands of Central Americans making their way north through Mexico, Mr Trump ordered troops to the border and declared the migrants to be an "invasion".
The joint statement said presidents have the power to "suspend the entry of all aliens" and to impose "any restrictions he may deem to be appropriate on them" if they are judged to be "detrimental" to US interests under the Immigration and Nationality Act.
Accordingly, if the president issues a suspension or ban on entry through the US/Mexican border, those who illegally manage to enter the US will not be allowed to apply for asylum once there.
"Today, we are using the authority granted to us by Congress to bar aliens who violate a Presidential suspension of entry or other restriction from asylum eligibility," the statement said.
The rule will not apply retroactively. President Trump is expected to sign it shortly.
The American Civil Liberties Union swiftly declared the move "illegal".
"US law specifically allows individuals to apply for asylum whether or not they are at a port of entry," they said.
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