Much of the meat sold in British supermarkets and served in restaurants comes from animals slaughtered according to Muslim custom, but in many cases it is not labelled halal.
Ukip leader Nigel Farage has said labels should carry details of the method of slaughter, and said the UK would have to break with EU rules to ensure this is done.
But the Prime Minister has said the issue is a matter between retailers and restaurants and their customers.
Mr Cameron said: "Do we need a national labelling scheme? I would rather hope not. I would rather hope it could be dealt with by the restaurants and businesses.
"We should start from the approach that the greater the transparency the better, and I hope we can achieve that transparency without necessarily having a full-on national labelling scheme."