AFPGermany’s centre-left Social Democrats (SPD) have reached an agreement on a coalition government with Chancellor Angela Merkel’s conservatives (CDU/CSU), according to media reports.
A deal on distributing ministries was said to be one of the last major hurdles towards forming a coalition.
The agreement looks set to end more than four months of wrangling since inconclusive elections in September.
Negotiators have been in non-stop talks since Tuesday morning.
The remaining stumbling blocks have been workers’ rights and healthcare.
SPD leader Martin Schulz had at first ruled out going back into government with Mrs Merkel’s centre-right CDU and its Bavarian sister party, the CSU.
But he changed his mind when CDU/CSU coalition talks with the liberal Free Democrats (FDP) and Greens broke down.
After months of stalemate, there are now hopes Germany could have a government in place by Easter.
Pillar of stability
However, the SPD’s 460,000 members will have a final say on whether to accept a coalition agreement in a postal vote due to take place in coming weeks.
Those opposed to any deal with Mrs Merkel include a new group within the SPD calling itself NoGroKo (no grand coalition).
European Union allies, such as France, see Germany as a pillar of stability in the bloc and have been hoping Mrs Merkel succeeds.
The far-right Alternative for Germany (AfD) won 94 seats in parliament in September’s vote and became the third biggest force in German politics.
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