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.

Germany's Social Democrats (SPD) approved a coalition agreement with the CDU/CSU conservatives, two sources close to the party said on Wednesday, clearing the last hurdle for the formation of a new government in Europe's largest economy.

Germany's coalition government has cleared its final hurdle to power after the Social Democrats (SPD) voted in favour of the agreement.