Four months after vote, Chancellor in final lap of coalition talks
Merkel will meet with Social Democrat leader Martin Schulz and the chief of her Bavarian allies, Horst Seehofer, at 0800 GMT, sources close to the talks told AFP.
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The formal negotiations bring Germany a step closer to a new government and come after the SPD on Sunday narrowly approved a preliminary cooperation blueprint and agreed to push on with the talks.
But the outcome is still uncertain as the SPD will give its 440,000 members a vote on the end result.
September's election left Merkel without a majority and struggling to find partners to govern, as the far-right AfD party capitalised on anger over a record influx of asylum seekers to snatch voters from the established parties.
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After Merkel's bid to form a government with the smaller left-leaning Greens and pro-business FDP fell through, she was forced to woo back the SPD, its partner in the last four-year-term.
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