The leaders also reportedly agreed to abandon the country's stated aim of reducing carbon emissions by 40 percent by 2020 - though Reuters reports the blueprint "foresaw Germany generating 65 percent of its energy from renewables by 2030".
"I am quite satisfied", he said.
Merkel has already been politically weakened by leading the CDU-CSU to its worst election result since 1949, and by her failure in November to broker a coalition deal with the Greens and the pro-business Free Democrats (FDP).
Angela Merkel's conservatives reach preliminary deal with Social Democrats. The Christian Democrats and SPD have governed Germany together for eight of the past 12 years. The euro's lack of a central fiscal pot to even out recessions has been discussed as one its weaknesses.
The 39 negotiators - 13 from each party - had begun the exploratory talks last Sunday. In early London trading, the euro rallied 0.7 percent against the dollar to hit its highest levels since January 2015 at $1.212 (88 pence).
Details were expected to be released later in the morning.
A historically poor showing for Merkel's Christian Democratic Union (CDU) in September's vote has left the Chancellor scrambling to hammer out an agreement with the second largest party in parliament, the center-left Social Democrats SPD.
Despite these hurdles, Merkel - obviously exhausted after a marathon overnight negotiation session - said she was "optimistic that things will move forward" to forming a new coalition government.
Angela Merkel is heading into the final day of make-or-break negotiations to determine her future as Germany's leader.
Germany now has a caretaker government, limiting Merkel's ability to launch major initiatives at a time when French President Emmanuel Macron has pressed for ambitious reforms in the European Union.
The talks are not only crucial for Merkel, but also for Schulz and the leader of Merkel s Bavarian allies, Horst Seehofer, said political analyst Karl-Rudolf Korte of Duisburg-Essen University.
"Many, many hours of painstaking work and alignment are contained in these 28 pages,"member of the Christian Democratic Union or CDU Julia Klockner said".
After more than 24 hours of talks, party chiefs and their teams reached an in-principle deal to start formal coalition talks that could lead in the coming months to a new government for the biggest European Union economy, they told AFP.
Participants have described the negotiations as "good", but SPD leaders need to convince their party members as they are offering them a vote on January 21 on whether to proceed.
If talks fail, Merkel's only remaining options will be to form a minority government or hold new elections.
A gunman opened fire at a Sunday service killing 26 people and injuring 20 more in Sutherland Springs, Texas , on November 5. Ryland's stepmother, Joann Lookingbill Ward, was among the dead as well as her daughters Brooke, 5, and Emily, 7.
Max Allegri of Juventus and Luis Enrique , who quit as Barcelona boss previous year , are the leading contenders to replace him. The Premier League champions are expecting Antonio Conte to call it quits after the ongoing campaign.
Seal has accused Oprah Winfrey of knowing about Harvey Weinstein's history of sexual abuse in an Instagram post . In fact, Model Chrissy Teigen came to Winfrey's defense and hit the singer with the best response.
Paramilitary forces were called to the city of Kasur near the Indian border, Punjab provincial police said. Ihtisham ul Haq, summed up many people's exasperation at a lack of progress in finding the killer.
The point guard missed all eight of his first-half field-goal attempts and finished with four points on 2-of-15 from the field. After a tight first quarter, the Raptors onslaught began in the second quarter, outscoring the Cavs 35-16 in the period.
However, monthly core inflation, which strips out volatile food and energy costs, rose 0.3%, following a 0.1% advance in November. Excluding food and energy prices, core producer prices still dipped by 0.1% in December following a 0.3% increase in November.
If NHTSA gives the approval, General Motors Co . will still require permission from states to run the cars without steering wheel. It has filed a petition with the National Highway Traffic and Safety Administration to test the robocars.
The singer teased a short trailer for " End Game " on Instagram this morning, and fans are already flipping out. I have to admit, the video looks pretty with all the bright lights and late night parties.
That's why our Facebook post about Dolly Parton's Dixie Stampede dropping Dixie from its name brought out so many opinions. World Choice Investments , LLC now operates several dinner show attractions in Pigeon Forge and Branson, Missouri.
According to the numbers, 60.2% of respondents in Alabama support cannabis legalization, for medical and/or recreational use. It's taking away the rights of states to have a say in regulation, which apparently has angered conservatives and liberals.
Stephen Curry passed Golden State Warriors teammate Kevin Durant in overall voting and would be team captain if votes ended today. For the last two frontcourt spots, I chose Anthony Davis who is now second in frontcourt voting and Pual George.
Power restored at Consumer Electronics Show
CES, celebrating its 51st birthday, has more exhibitors than ever this year - 4,000 from 150 countries. At Intel's booth , a woman played the violin to entertain the attendees caught in the dark.
Call of Duty: WWII Zombies - The Darkest Shore Trailer
In The Darkest Shore , you'll run into new types of zombies which will be faster, smarter, and more aggressive than ever before. Activision has just released a new trailer to whet your appetite and to showcase some of what is to come once this is released.
Canada Draws Line in Trade Dispute with Trump
Freeland insisted NAFTA talks are on a separate track from the ongoing dispute with the USA over softwood lumber. On NAFTA, Freeland said she remains optimistic that a deal can be reached.
Marriott apologizes after listing Taiwan, Tibet as countries
Marriott president and chief executive Arne Sorenson soon issued a lengthy apology letter, which described the like as "careless". It triggered an uproar on Chinese social media as Tibet is an "autonomous region" firmly under Chinese control since the 1950s.
Everton readying £20 million offer for Arsenal attacker
Tosun told the club's official website: "I can say that I am a very good and risky striker when I am in the penalty box". Asked if the move was motivated by Walcott's global ambitions, Wenger said: "Yeah of course, everyone wants to play".
Armed Robbers Steal Jewelry Worth $5m From Ritz Paris Hotel
Three suspects inside threw bags of goods out a window to at least two accomplices outside, according to a police official. The hotel was bought in 1979 by Egyptian billionaire Mohamed Al-Fayed, whose son Dodi was also killed in the fatal crash.
Jacksonville Jaguars CB Jalen Ramsey limited in practice
In the receiving end, Keelan Cole posted 715 yards and three touchdowns while Marqise lee added 702 yards and three touchdowns. Ben Roethlisberger passed for more than 300 yards, but he also threw five interceptions and did not have a touchdown pass.
Large Amounts of Water Ice Found Beneath Mars' Surface
Geological Survey, the nonprofit Planetary Science Institute, Georgia Tech, Johns Hopkins University and the University of Texas. In 2008, researchers even captured a full-scale avalanche on Mars as it plunged down a 2,300-foot slope into a valley.
MI made great again with $1 BILLION Chrysler Investment
The company said the investment announced Thursday is separate from a 2015 labor deal with the United Auto Workers union. Fiat/Chrysler says the tax plan will also mean the return of manufacturing jobs to the US from Mexico.