The US President explained the truth behind an apparent frosty first meeting with Mrs Merkel in the White House, when it appeared the pair refused to shake hands.
The two leaders appeared before the cameras in July after holding a bilateral meeting in the Oval Office where they talked about strengthening Nato, fighting ISIS and resolving Ukraine’s conflict with Russia.
At the time it was viewed as a snub but Mr Trump has now revealed it was all down to a misunderstanding.
He said: “I had been standing with her for quite a while and then someone started shouting: ‘shake her hand, shake her hand’ but I did not hear that.
“It was then made into a big deal.
“I’m getting along really well with Angela.”
The non-handshake was raised during Mr Trump’s tour to Asia when he accused the media of failing to report on his good relationship with other heads of state and government.
He was asked by reporters if he had a particularly good relationship with totalitarian or authoritarian leaders after successful meetings with Chinese President Xi Jinping and Philippines hardman Rodrigo Duterte.
He said: “I have a great relationship with each of the leaders who were present at the ASEAN Summit.”
Handshakes also hit the headlines at the talks in Manila in the Philiipines as leaders took part in a traditional greeting to open the summit.
Standing alongside other leaders – Filipino President Rodrigo Duterte and Russian Prime Minister Dmitry Medvedev, among others – Mr Trump and his counterparts crossed arms before linking hands with one another.
Photos from the meeting show Mr Trump grimacing, wrestling and laughing alongside his counterparts also taking part.
The US President appeared befuddled by the master of ceremonies request to begin the “traditional” handshake.
The MC said: “Give us your brightest smile. It’s the ASEAN handshake: right hand over left.”
Russian Prime Minister Mr Medvedev, however, was less than convinced by the event, refusing to cross his arms when linking hands.