Christian Democrat leader Angela Merkel is set to replace Gerhard Schröder as Germany's next chancellor, in a political deal that will see the departure of Mr Schröder from the national political stage, senior members of the ruling Social Democrats have told the Financial Times.

Ms Merkel's expected victory in the battle for the chancellorship is likely to be announced on Monday, following a meeting on Sunday evening in Berlin between Mr Schröder and Ms Merkel, according to the SPD politicians, who spoke on condition of anonymity. The two leaders met on Thursday evening for four hours to agree the framework of a SPD-CDU grand coalition, but refused on Friday to disclose details. The talks also include SPD leader Franz Müntefering, and Bavarian premier Edmund Stoiber.