"Countries have had to find large sums to cover the costs of a historic refugee crisis in Europe," the Paris-based Organisation for Economic Cooperation and Development said.
But it noted that "most have so far avoided diverting money from development programmes".
An unprecedented 1.5 million people claimed asylum in OECD countries in 2015, including more than a million in Europe.
In Austria, Greece, Italy, the Netherlands and Sweden, refugee costs accounted for more than 20 per cent of aid expenditure in 2015, the 34-member organisation said in a report.
The outlays for hosting refugees accounted for the bulk of a 6.9 percent increase in development aid for the year, but excluding the funds spent on refugees, aid was still up 1.7 per cent in real terms, the OECD said.
"Measured in real terms -- correcting for inflation and for a sharp depreciation in many... Currencies against the dollar last year -- (aid) is up 83 per cent since 2000, when the Millennium Development Goals were agreed," the report said.
While welcoming the "slight increase" in development aid, Oxfam's Natalie Alonso said: "We still live in a world of plenty where almost 900 million people suffer from extreme poverty."
The report covered the 28 of the OECD's member states that make up the Development Assistance Committee (DAC).
Of those, only six countries -- Denmark, Luxembourg, the Netherlands, Norway, Sweden and Britain -- met a UN target to keep aid at or above 0.7 per cent of gross national income (GNI), the report noted.
"We need to remember that the best way to achieve the Sustainable Development Goals and avoid future refugee crises is to continue the current momentum of aid flows, particularly to the neediest and most fragile countries," said DAC chairman Erik Solheim.
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