BERLIN (Reuters) - A military conflict with North Korea can be avoided, Chancellor Angela Merkel said on Wednesday, adding that Germany could help find a diplomatic solution to Pyongyang's standoff with the United States.

"We should do more," Merkel said of Germany and the European Union.

"We cannot simply insist on a diplomatic solution while we sit and do nothing," she added at an event organized by the Handelsblatt business daily.

Merkel, who is expected to win an election next month, said EU countries like Germany and France could play an active role in securing a peaceful solution to the standoff like they did in talks with Iran over its nuclear program.

(Reporting by Paul Carrel; Writing by Joseph Nasr)