German Chancellor Angela Merkel speaks at the congress of the youth wing of her Christian Democratic Union party, Junge Union, in Potsdam on Saturday. ((Thomas Peter/Reuters))

Germany's chancellor says attempts to create a multicultural society in the country have "utterly failed."

Angela Merkel said Saturday that the concept that different cultures can live happily side by side does not work.

Merkel made the comments during a speech in Potsdam to youth members of her Christian Democratic Union party.

She stressed that immigrants need to do more to integrate, including learning to speak German.

Merkel's comments came as Reuters news agency said she is facing pressure from within the party to take a stronger stance on immigrants who don't appear willing to integrate into German society.

Immigration issues have become a hot topic, and a recent survey by the Friedrich Ebert Foundation think-tank indicated more than 30 per cent of Germans believe the country is "overrun by foreigners."