She said she regretted that the British parliament had rejected a Brexit deal negotiated with the European Union and said British Prime Minister Theresa May needed to say how Britain would proceed, Reuters reported.
"We think now it is up to the British side," Merkel said. "We want to keep damage to a minimum, and there will be damage with the departure of Britain."
"We will of course try to find an orderly solution but we are also prepared for the scenario that there may not be an orderly solution," Merkel added.
EU negotiator Michel Barnier warned on Wednesday that the British Parliament's overwhelming rejection of a negotiated Brexit deal increases the risk that Britain will crash out of the European Union without an agreement.