Gerhard Schröder on Monday night signalled for the first time that he might soon surrender the German chancellorship following the country's indecisive election more than two weeks ago.

Mr Schröder's comments during a television interview marked a striking turnabout from his bold performance on election night in which he laid claim to remain chancellor for another four years. His retreat could pave the way for successful talks to start soon on forming a “grand coalition” government in Berlin.