"I don't rule it out in the future. We are considering what we can do," she told reporters, adding that Iraq had to be enabled to provide its own security. She said that Iraq's and Germany's defense ministries had been in touch with one another on the topic.

Washington's ambassador to Berlin, William R. Timken, has been suggesting Germany do more to train the Iraqis.

The German program is conducted in Germany and in Gulf nations, not on Iraqi territory.

Revival of Mideast Quartet

Mubarak said joint efforts were needed to stop an escalation of fighting in the Palestinian territories.

Merkel called for the revival of the Mideast Quartet, a working party made up of the United States, Russia, the European Union and the United Nations, to mediate between the Palestinians and Israel. She said Egypt, Saudi Arabia and Jordan also had to be integrated in a policy of advancing by small steps and announced she would visit Egypt in February during a tour of Mideast nations.

Germany will hold the rotating presidency of the European Union for the first half of 2007.

Both Merkel and Mubarak said they backed Lebanon's embattled prime minister, Fuad Saniora. Shiite groups are demanding he step down.

Criticizing Damascus, she said, "Unfortunately I cannot see that Syria is willing at the moment to contribute by constructive steps."

Damascus should give Lebanon diplomatic recognition, she said.