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Jose Manuel Barroso said he did not want ''a relentless march to one single super state, as some will have us fear''
Downing Street has rejected criticism from the outgoing European Commission president that Britain risks making an "historic mistake" if it leaves the EU.
Jose Manuel Barroso said on Sunday, and repeated the message in a speech in London, that the UK would have "zero" influence if it decided to quit the EU.
But a No 10 source the status quo was not acceptable and changes were needed.
David Cameron is expected to set out further plans to tighten migration rules before the end of the year.
But the BBC's political editor Nick Robinson said it was not clear what the specific measures would be or whether the prime minister would announce them before the Rochester and Strood by-election on 20 November, where the Tories are trying to prevent UKIP from snatching the seat.
'Historic mistake'In recent days, it has been reported that the UK could seek an "emergency brake" to stop EU migration after it reached a certain level or to limit the number of National Insurance numbers issued to new arrivals from the EU.
Mr Barroso warned at the weekend that the prime minister's hopes of curbing EU immigration could be illegal.
Analysis by political editor Nick Robinson
The prime minister will announce plans to limit EU migration before Christmas but the search is still on for a way to do this without needing to re-write the founding treaty of the EU - the Treaty of Rome - which enshrines the principle of the freedom of movement of people.
There is some frustration amongst the prime minister's advisers that ideas are leaking out before they have had proper time to assess them.
That, of course, is the problem with simultaneously trying to solve a political problem - the rise of UKIP - by talking up how tough you'll be in Europe at the same time as considering whether any of your promises will be agreed to by 27 other EU countries.
In a speech at think tank Chatham House, he repeated his view that an "arbitrary cap" on immigration would not accepted by other EU states, saying the EU was willing to "accommodate the UK's legitimate concerns" but not if they challenged the fundamental principles of the organisation.
Continued EU membership, he argued, was in the UK's economic, political and security interest and he urged pro-EU politicians to make the case more loudly for its benefits.
Mr Barroso said the UK was able to maximise its influence more effectively within the EU, suggesting all EU members "needed a little bit of help from their friends to get by".
He acknowledged that there were "widespread concerns in the UK and elsewhere about abuse of free movement rights".
And he added: "The commission has always been ready to engage constructively in this discussion. But changes to these rules need all countries to agree.
"And it is an illusion to believe that space for dialogue can be created if the tone and substance of the arguments you put forward question the very principle at stake and offend fellow member states."
'Zero influence'"It would be an historic mistake if on these issues Britain were to continue to alienate its natural allies in central and eastern Europe, when you were one of the strongest advocates for their accession."
While there would be further integration in future, Mr Barroso rejected suggestions there was "a relentless march towards a superstate" in the EU, saying he believed in a "ever closer union of the peoples of Europe acting as sovereign nations".
He warned against "counter-revolution" within the 28 member body, saying that for countries who "accept the rules of the club there will always be a place and equality of treatment".
In a question and answer session with journalists and business leaders, Mr Barroso challenged those who wanted to leave the EU to set out their alternative vision for the UK's future.
"There are always alternatives but it would be a worse alternative," he said.
And he dismissed criticism of him by Conservative chairman Grant Shapps as an "unelected bureaucrat".
Mr Barroso said he had spent years in government before becoming EC president, had twice been elected as president by the elected members of the European Parliament and said the commission was created by member states not some "supernatural authority" - he added that he was not aware of who Mr Shapps was.
'Less diplomatic'The Downing Street source said Mr Cameron would listen to Mr Barroso's argument, but said that Britain needed to negotiate a better deal.
If concerns were addressed, he added, the EU "would be a very suitable place for us".
Mr Cameron has said the relationship with the EU will be reformed ahead of an in/out referendum, to be held by the end of 2017, if he remains in office after next year's general election.
Deputy Prime Minister Nick Clegg said transitional immigration controls on new EU states needed to be beefed up in future to include self-employed workers.
But the Lib Dem leader added: "I believe in reform. I do not believe in exit. The Conservatives are embarked on a strategy which has only one final destination - which is leaving the EU altogether."
Mr Barroso's term of office ends this month and he will be replaced by Jean-Claude Juncker.
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