Merkel singled out financial market regulations and intellectual property law as two fields which she wanted to review, saying that there were "clear advantages" for both sides in coming together.

She will visit Washington on January 4 for talks with US President George W. Bush that are expected to touch upon the Middle East, Afghanistan, Iraq, Iran and Kosovo.

The relationship between Germany and the United States hit a low when Merkel's predecessor, Gerhard Schroeder, opposed the US-led invasion of Iraq in 2003.

"We want to talk about ever-closer economic co-operation. Our economic systems are based on the same values," Merkel told the FT.

"We should be looking for ways to keep developing these together at a transatlantic level.

"We must watch out that we do not drift apart but instead come closer together, where there are clear advantages for both sides."

Germany's six-month presidency of the European Union began earlier this week and Merkel is also chair of the G8 for 2007.

Questioned about Europe's reliance on Russian energy imports, Merkel warned that relations between the two must be based on reciprocity.

"If obstacles are being erected to protect Russian companies from European investors, nobody should resent it if the Europeans take reciprocal action," she told the FT.