Obama, D-Ill., and the likely Democratic Party presidential nominee, began the European leg of his fact-finding tour in Germany, where he is to deliver a speech during a rally in at a Berlin monument, Deutsche Welle said.
Before their meeting, Merkel told the newspaper she wanted to discuss trans-Atlantic political and economic ties, NATO, climate change and trade. She also said she would resist pressure to send more German troops to Afghanistan beyond a pledged increase of 1,000.
Merkel said she expected continuity in U.S. relations with Europe regardless of whether Obama or Sen. John McCain, R-Ariz, won the U.S. presidential election.
"In general, the impact of differences on domestic policy is larger than those on foreign policy," she said.
Obama is to deliver his address during a rally at the Victory Column, a monument to Germany's military defeats of France, Austria and Denmark, the German newspaper said.
Before leaving Israel, Obama went to one of Jerusalem's holiest site, the Western Wall, CNN reported. He walked toward the site with Rabbi of the Wall Shmuel Rabinovich, who read Psalm 122. Obama left a note, a custom of site visitors.
Obama is also to visit France and Britain before returning to the United States.