Trump made the comment during a discussion of US visa and immigration policies inside the Oval Office.
"The so-called bipartisan DACA deal presented yesterday to myself and a group of Republican Senators and Congressmen was a big step backwards".
"We are going to take a strong look at our country's libel laws, so that when somebody says something that is false and defamatory about someone, that person will have meaningful recourse in our courts", Mr Trump said to reporters as he attended a cabinet meeting.
"We've been talking about DACA for a long time", Trump said, referring to the Deferred Action for Childhood Arrivals (DACA) program formed in 2012 through an executive order by former President Barack Obama that allowed those who were brought to the USA illegally as children to stay and work without fear of deportation. The administration plans to appeal.
White House spokeswoman Sarah Sanders said, "We still believe we can get there".
Trump allowed media to cover the one-hour brainstorming session, at which Trump said he was open to "comprehensive" immigration reform at a later date.
Earlier on Thursday, Republicans in the House of Representatives told reporters there had been substantial progress toward a deal.
The details of the deal - which was agreed upon by Sens. "I am hopeful that we can make some real progress on solving this problem". "A lot of people are coming in that we can't have", Trump added.
Sens. Jeff Flake (R-Ariz.), Dick Durbin (D-Ill.), Lindsey Graham (R-S.C.), Cory Gardner (R-Colo.), Michael Bennet (D-Colo.) and Robert Menendez (D-N.J.) released a joint statement. I want to fund our military, not do a Dem defund.... Never said 'take them out.' Made up by Dems. The Supreme Court said Alsup should have ruled first on the federal government's claim that the courts have no jurisdiction to review its decision to end the program.
Democrats had pressed to have a deal included in a must-pass funding bill next week, as a government spending plan runs out on January 19. You can't have DACA without border security, without visa lottery system reform and without an end to certain chain migration policies, " Shah reaffirmed.
The Trump administration had announced in September that it meant to wind down the program over six months, allowing Congress time to enact a permanent solution for the young immigrants commonly known as "Dreamers".
Tuesday was a very unusual day for the ongoing negotiations and uncertainty regarding the DACA program and the DREAMers, young people brought here illegally by their parents who have known this as their home.