Berlin: Germany's centre-left Social Democrats (SPD) have agreed to start formal coalition negotiations with Chancellor Angela Merkel's conservatives, reports BBC.

Ever since Germans went to the polls in September, the chancellor's ruling party has tried to form a government.

Initially the SPD ruled out going back into government with Mrs Merkel's centre-right CDU and its Bavarian sister party, the CSU.

But, after months of stalemate, they voted narrowly for formal talks. In-depth negotiations could start on Monday and Mrs Merkel is keen for them to wrap by 12 February.

SPD leader Martin Schulz had at first refused to take part in a coalition but changed his mind when CDU/CSU coalition talks with the liberal Free Democrats (FDP) and Greens broke down.

The far-right Alternative for Germany (AfD) won 94 seats in parliament in September's vote and became the third biggest force in German politics.

It's fair to assume Angela Merkel has permitted herself a sigh of relief. Nevertheless the poker face was on for the cameras as she gave a brief statement welcoming the Social Democrats' decision to approve formal coalition talks. This is her last realistic shot at forming a government and avoiding fresh elections. It is far from a done deal. Many Social Democrats blame Mrs Merkel for a poor election result in September and there is still significant opposition within the party to another four years as her junior coalition partner.