The president told reporters at the White House about the agreement and the official White House account tweeted about the deal.
The president praised the deal and criticized the Democrats for not helping to ease the crisis at the border. He also explained that his administration had built much of the border wall he promised, and said some of it was replacement for outdated sections at the border.
A U.S. official said that the agreement would have Guatemala offer asylum to migrants in their country long before they made the trek through Mexico towards the U.S. border, according to CNN.
Earlier in July the president had come close to an agreement with the country, but their Supreme Court blocked the Guatemalan president from signing the deal.
Trump tweeted angrily about the failed negotiations from his social media account.
"Guatemala, which has been forming Caravans and sending large numbers of people, some with criminal records, to the United States, has decided to break the deal they had with us on signing a necessary Safe Third Agreement," he said.
"Guatemala has not been good," Trump added. "Big U.S. taxpayer dollars going to them was cut off by me 9 months ago."
More specific details about the deal, especially on how they avoided the stumbling block preventing the first, deal, were not released on Friday.
Here's more on the deal with Guatemala:
Trump signs agreement on asylum with Guatemala www.youtube.com