The comments come at a time when talks on Tibet with the Chinese government remain at an impasse, with the last round held in 2008. The BBC said the Dalai Lama's latest statement may breathe new life into the talks.
The Dalai Lama has called for more autonomy than the current Chinese status of Tibet Autonomous Region. China says that is a back door attempt to "splitting the motherland," the BBC said.
The Dalai Lama has come under increased Chinese attacks following riots in the Tibetan capital of Lhasa and elsewhere last year.
He said there are growing signs of frustration and resentment among younger Tibetans on relationship with China. He also said China's policy toward ethnic minorities has been "a failure."
"They always look from only one angle -- how to keep, how to control. Only that angle. They don't care about what the local people are feeling," Dalai Lama said.
Nevertheless, the Dalai Lama called the recent riots in Xinjiang "very sad", saying he totally disagreed with violence and that "that kind of riot is no help to solving the problem".
Information for this report was provided by BBC.