In her preview of Saturday's meeting in Brussels Mrs Merkel told the Bundestag "A third-party state, and that is what Great Britain will be, can not and will not have the same rights or even be better off..."
"We can only have an agreement on the future relationship with Britain when all questions about its exit have been cleared up satisfactorily".
Merkel added that she expected European Union members to be consistently united in the negotiations as there was "now a great deal of agreement" between the 27 member states and the European Union institutions about the bloc's joint Brexit negotiating stance.
Britain has two years to complete its deal to leave the 28-nation European Union but is now preoccupied with a snap election taking place in early June.
"Without progress on the many open questions of the exit, including the financial questions, it makes no sense to have parallel negotiations over the future relationship", the chancellor said. "But first we need to know how Great Britain sees its future relationship with us".
With Merkel facing an election of her own later this year against an opponent who says it is inconceivable that lorries and money should be able to cross borders freely, but not people, the German chancellor appears to be making clear she has her own political red lines.
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German Chancellor Angela Merkel waves prior to her speech about the European Union at the German parliament Bundestag in Berlin, Thursday, April 27, 2017.
Her demand for a more constructive approach from Britain reflects growing irritation at the blithe assurances of United Kingdom ministers that they can bend the EU27 to their will when talks start.
She added that Germany and other European Union countries need to define their own "interests and goals", and that she expects European Union nations to emerge from the Brussels summit with a "strong signal of unity".
Merkel's Brexit speech comes ahead of a summit on Saturday during which the German chancellor and the heads of state of 27 European Union countries will meet to discuss guidelines for the Brexit negotiations.
"We will conduct these negotiations in a fair and constructive way and we expect exactly the same from the British side".
German Chancellor Angela Merkel waits for the beginning of the debate about the European Union at the German parliament Bundestag in Berlin, Thursday, April 27, 2017.
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