EU leaders will meet with Turkish Prime Minister Ahmet Davutoglu in Brussels today in yet another bid to end the crisis.
Merkel, the German chancellor, yesterday insisted the summit could lead to a "solution" as thousands of refugees continue to enter Europe.
She believes a deal with Turkey – which is desperate to join the 28-member bloc – will be crucial to easing the flow of migrants.
Speaking to the German parliament, Merkel suggested she was confident of striking an agreement.
But the Chancellor said EU leaders "still have work to do" before speeding up talks on membership for Ankara.
Addressing Turkey's controversial crackdown press freedom and Kurdish militants, she said there would be "no reneging" on the bloc's "principles".
Merkel also warned Germans should not be "deceived" by the slowdown in the influx of migrants caused by border closures across Europe.
She said: ”The current easing that Germany and some other member states is experiencing is one thing.
"The situation in Greece is the other and it must be a big concern to us all because it is not without consequences for us all in Europe."
Earlier this week Merkel faced fresh humiliation as Germans vented their anger over her refugee policy.
Her Christian Democratic Union party lost out to Eurosceptic rivals including the anti-immigration Alternative for Germany in key regional elections.
Ukip MEP Paul Nuttall responded by saying: "Merkel has ridden roughshod over the interests of the German people by inviting almost infinite numbers of people across its borders."