The prime minister will criticise "state multiculturalism" in his first speech on radicalisation and the causes of terrorism since being elected.
Addressing a security conference in Germany, David Cameron will argue the UK needs a stronger national identity to prevent people turning to extremism.
Different cultures are encouraged to live apart, and objectionable views met with "passive tolerance", he will say.
He will also signal a tougher stance on groups promoting Islamist extremism.
Mr Cameron is to suggest there will be greater scrutiny of some Muslim groups that get public money but do little to tackle extremism.
Ministers should refuse to share platforms or engage with such groups, which should be denied access to public funds and barred from spreading their message in universities and prisons, he will argue.
"Frankly, we need a lot less of the passive tolerance of recent years and much more active, muscular liberalism," the prime minister will say.
"Let's properly judge these organisations: Do they believe in universal human rights - including for women and people of other faiths? Do they believe in equality of all before the law? Do they believe in democracy and the right of people to elect their own government? Do they encourage integration or separatism?
"These are the sorts of questions we need to ask. Fail these tests and the presumption should be not to engage with organisations," he will add.
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We have even tolerated these segregated communities behaving in ways that run counter to our values”
BBC political correspondent Ben Wright said the prime minister would be delivering a stark message to his audience in Munich - that European countries must "wake up to what's happening within their borders".
Mr Cameron will draw a clear distinction between Islam the religion and what he describes as "Islamist extremism" - a political ideology he says attracts people who feel "rootless" within their own countries.
"We need to be clear: Islamist extremism and Islam are not the same thing."
The government is currently reviewing its policy to prevent violent extremism, known as Prevent, which is a key part of its wider counter-terrorism strategy.
The short speech will make it clear that Mr Cameron wants a stronger sense of citizenship and national belonging to replace an approach he thinks has failed, added our correspondent.
'I am a Londoner too'
A genuinely liberal country "believes in certain values and actively promotes them," Mr Cameron will say.
"Freedom of speech. Freedom of worship. Democracy. The rule of law. Equal rights, regardless of race, sex or sexuality.
"It says to its citizens: This is what defines us as a society. To belong here is to believe these things.
"Each of us in our own countries must be unambiguous and hard-nosed about this defence of our liberty."
He will say that under the "doctrine of state multiculturalism", different cultures have been encouraged to live separate lives.
"We have failed to provide a vision of society to which they feel they want to belong. We have even tolerated these segregated communities behaving in ways that run counter to our values."
Building a stronger sense of national and local identity holds "the key to achieving true cohesion" by allowing people to say "I am a Muslim, I am a Hindu, I am a Christian, but I am a Londoner... too", he will say.
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