The German government will sharply raise its forecast for the number of asylum seekers expected to arrive this year to a record-breaking 750,000, coalition sources said on Tuesday.

The increase, from a previous estimate of 450,000, is the latest sign of how a huge influx of migrants and refugees, many fleeing war and poverty in Africa and the Middle East, is straining the European Union's ability to cope.

"The situation is extremely unsatisfying," Chancellor Angela Merkel told ZDF television on Sunday, referring to the disproportionate number of refugees that Germany has taken in compared to many of its EU partners. "We need a common European asylum policy."