Attempts to build a multicultural society in Germany have "utterly failed", Chancellor Angela Merkel says.
In a speech in Potsdam, she said the so-called "multikulti" concept - where people would "live side-by-side" happily - did not work.
Mrs Merkel's comments come amid recent outpourings of strong anti-immigrant feeling from mainstream politicians.
A recent survey showed that more than 30% of Germans believed Germany was "overrun by foreigners".
The study - by the Friedrich Ebert Foundation think-tank - also showed that roughly the same number thought that some 16 million of Germany's immigrants or people with foreign origins had come to the country for the social benefits.
Speaking to a meeting of young members of her Christian Democrats (CDU), Merkel said allowing people of different cultural backgrounds to live side by side without integrating had not worked in a country that is home to some four million Muslims.
"This (multicultural) approach has failed, utterly failed," Merkel said.
Merkel faces pressure from within her CDU to take a tougher line on immigrants who don't show a willingness to adapt to German society and her comments appeared intended to pacify her critics.
Mrs Merkel told the gathering on Saturday that at "the beginning of the 60s our country called the foreign workers to come to Germany and now they live in our country... We kidded ourselves a while, we said: 'They won't stay, sometime they will be gone', but this isn't reality.
In her speech, the chancellor specifically referred to recent comments by German President Christian Wulff who said that Islam was "part of Germany" like Christianity and Judaism.
While acknowledging that this was the case, Mrs Merkel stressed that immigrants living in Germany needed to do more to integrate, including learning to speak German.
"Anyone who does not immediately speak German", she said, "is not welcome".
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Multiculturalism has failed where ever it has been tried, It's not natural.
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