British Prime Minister David Cameron has said he does not favour holding an in/out referendum on Britain's membership of the European Union for now.

However, he said he felt it was right to renegotiate Britain’s role in the union.

"I don't think it would be right for Britain to have an in/out referendum today because I think we would be giving the British people a false choice," Mr Cameron told parliament.

The prime minister was answering questions on Europe ahead of a long-awaited speech he will deliver in the Netherlands, in which he will set out his EU stance.

"Millions of people in this country, myself included, want Britain to stay in the European Union, but they believe there are chances to negotiate a better relationship," said Mr Cameron.

Asked by Labour opposition leader Ed Miliband if Britain would still be inside the EU in five years, Mr Cameron repeated that he thought Britain was "better off in the EU".

Mr Cameron reiterated that he would not take Britain into Europe's single currency.

Some EU leaders and diplomats are anxious about the prospect of Mr Cameron trying to reshape his country's relationship with the union and fear Britain may be drifting away from it.