Schulz: Coalition talks with Merkel in early January

Also, the SPD leader, Schulz, will hold another meeting Wednesday with Chancellor Merkel, her basic ally, Horst Seehofer and the head of the two parties' parliamentary groups to discuss agenda issues in detail.

“Lidershipi of Germany's centre-left Social Democrats (SPD) voted in favour of talks on a new coalition government with Chancellors Angela Merkel”, according to SPD sources.

Some party members have expressed their disappointment over the decision because the previous coalition government between the two parties was followed by a poor result for the SPD in the September polls.

Following the failure of talks with the two smaller parties, last month Merkel has remained only two solutions, forming a minority government, or starting talks with the SPD for another major coalition.

Merkel has ruled out forming a minority government, arguing that Europe needs a stable German government.