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"The approach of saying, 'Well, let's just go for a multicultural society, let's coexist and enjoy each other,' this very approach has failed, absolutely failed," she said in a speech.
The remarks echo a comment she made to CNN last month in response to a question from Becky Anderson about Germany's Muslim population.
"We've all understood now that immigrants are a part of our country, (but) they have to speak our language, they have receive an education here," Merkel told CNN's "Connect the World" program September 27.
Germany's population is about 5 percent Muslim, the Pew Forum on Religion & Public Life estimated last year. Its roughly 4 million Muslims make up the largest Muslim population in western Europe.