The government has asked Interior Minister Sandor Pinter to prepare the plan by next Wednesday.
"The pressure of migration which presents serious difficulties for Europe affects Hungary the most among EU member countries," Foreign Minister Peter Szijjarto said. "Hungary cannot allow itself to wait any longer. Naturally, we hope there will be a joint European solution."
Szijjarto says the fence along the 175-kilometre southern border with Serbia wouldn't contravene any of Hungary's international legal obligations.
This step would allow Hungary, for example, from having to receive asylum seekers coming from Serbia or Greece, countries not considered by the EU to have the infrastructure necessary to guarantee their safety.
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"The Hungarian government is committed to defending Hungary and defending the Hungarian people from the immigration pressure," Szijjarto said, naming the Greek-Turkish and the Bulgarian-Turkish borders as locations where similar fences have been built with the purpose of stopping migrants.
So far this year, more than 53,000 people have requested asylum in Hungary, up from under 43,000 in 2014 and 2,150 in 2012. More than 70 per cent of asylum seekers over the past three months are from Syria, Afghanistan and Iraq, though the vast majority move further west to destinations like Germany and Sweden shortly after filing their asylum requests.