Germany ’s center-left Social Democrats have approved a deal to join a new coalition government, paving the way for parliament to elect conservative leader Friedrich Merz as the country’s new chancellor.

Members of the Social Democrats (SPD) have signed off on a coalition pact with the centre-right CDU and CSU, paving the way for a new government to enter office next week in Germany.

Germany's Social Democrats will announce on Wednesday whether members have backed a treaty for a coalition with the CDU/CSU conservatives, potentially clearing the last hurdle for the formation of a new government in Europe's largest economy.