Merkel said she was hopeful that European Union members would reach an agreement on outstanding questions arising from the migrant crisis, one of which is how to fairly distribute asylum-seekers among all the bloc's 28 member states.
She told German public broadcaster ARD that "everybody has to do their bit" and didn't rule out the possibility of letting some countries take in fewer migrants if they contribute more financially instead.
"What I continue to think is wrong is that some say 'we generally don't want Muslims in our country, regardless of whether there's a humanitarian need or not,'" she said. "We're going to have to keep discussing that."
Her comments come almost a year after Merkel's decision to allow hundreds of thousands of migrants stuck in other European countries to come to Germany.
That move prompted a further wave of migration through the Balkans that culminated in the daily arrival of more than 10,000 asylum-seekers at German borders at one point.
Frank-Juergen Weise, the head of the Federal Office for Migration and Refugees, said in an interview in the German weekly Bild am Sonntag that he expects a sharp drop in numbers in 2016 compared with last year.
Weise told German weekly Bild am Sonntag that his agency is planning for between 250,000 and 300,000 new arrivals this year.
The influx prompted countries such as Hungary to sharply criticize Merkel, and even accuse her of threatening Europe's stability.
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