The goal is to form a coalition government that will make a major effort to revive and revitalize Europe's largest economy.
Merz and SPD's Lars Klingbeil announced on Saturday that they had just concluded the preliminary talks that had been held since the election on February 23.
The future Chancellor Merz says at a press conference that both parties are "aware of the great challenges we face - primarily the international situation, but also in the EU and the challenges that Europe faces".
The idea is that Germany should have a new government in place by mid-April.