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Italian Prime Minister Giuseppe Conte, who heads up a month old anti-immigration government, had vetoed joint findings for the entire agenda of the summit in Brussels.
Italy has turned a corner of migration in recent weeks, sparking a fresh political row three years after the block faced its biggest ever migration crisis.
"Today, we are satisfied," Tale, a trainer who has recently been a virtual political unknown, told reporters following nine hours of talks described as "virulent".
The 28 leaders agreed to consider setting up "disembarkation platforms" outside the bloc, most likely in North Africa, in a bid to discourage migrants boarding EU bound smuggler boats.
Member States could also set up migrant processing centers but only on a voluntary basis.
The leaders also offered a concession to German Chancellor Angela Merkel, who faces a rebellion from within her own coalition government, with moves to stop migrants registered in Italy and other EU countries from Germany.
Merkel welcomed the deal.
"I am optimistic after today that we can still really work, even bridging the different views," Merkel said.
She had earlier warned that "migration could end up determining Europe's destiny" if it failed to reach an agreement.
The summit conclusions on the subject of "necessary steps to stop" migrants from Italy and Greece from moving to Germany.
After the death of more than one million asylum seekers in Germany since 2015, Merkel faces an end of month
Italy's stance has revived political tensions in the EU, despite the fact that it has come back to Europe in the last year, and sparked warnings that it will be more difficult to tackle migration.
Conte came to Brussels emboldened by the announcement to an American president Donald Trump, who has hailed Rome's tough stance, and who himself has blocked the conclusions of a recent G7 leaders meeting on trade.
The Italian government asked Aquarius, which docked later in Spain, and Lifeline, which went to Malta.
EU President Donald Tusk issued a stint of rising populism and authoritarianism, saying that "the stakes are high and time is short".
"Some may think I am too tough in my proposals on migration, but trust me, if we do not agree on them, then you'll see some really tough proposals from some really tough guys," the former Polish first added.
But the leaders failed to agree on long-term plans to overhaul the block's asylum rules, which say that migrants must be dealt with by the first country in which they arrive.
The plans include a permanent scheme to share migrants arriving in Italy and Greece around all other countries.
Former Communist Countries in Eastern Europe, particularly the authoritarian governments of Hungary and Poland, implacably opposed the plan.
Brexit was meanwhile largely relegated to the sidelines of this summit, with British Prime Minister Theresa May set to update leaders after making the move.
EU leaders are expected on Friday to say that talks, which are stalled on the issue of the Irish border, are running out of time to get a deal.
But in a light hearted bid to ease tensions, Belgian first Charles Michel surprised May with a gift of a Belgian football shirt.
A World Cup between Belgium and England coincides with the summit on Thursday night. Belgium won 1-0.
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