The Christian Democrats Party (CDU), led by Chancellor Angela Merkel, and the Social Democrats (SPD), led by former President of the European Parliament Martin Shulz, are set to repeat their former coalition.
Lengthy talks, lasting more than 24 hours, saw the two parties discuss a 28-page document on the proposed policies for the new German government.
German and European circles have been anticipating the formation of a new government since the parliamentary election last September that did not see a single party wins an absolute majority in the Bundestag.