The European Union is doubling its medical and food aid to Kosovo to help the refugees fleeing to neighbouring Albania.
EU foreign ministers meeting in Luxemburg on Monday are also expected to launch a joint programme of aid for the refugees with the United Nations.
In Belgrade, the Austrian foreign minister, Wolfgang Schuessel, who takes over the EU presidency next month, said President Milosevic had agreed to allow the return of refugees under UN supervision.
Mr Schuessel said he had also secured permission for international humanitarian organisations to be allowed into the conflict area.
From the newsroom of the BBC World Service