BERLIN - The Christian Democratic Union (CDU), Christian Social Union (CSU) and German Social Democrats (SPD) on Wednesday reached a contractual agreement on the outlines of a new "grand coalition."

Speaking to press after protracted negotiations here on Wednesday morning, visibly-tired SPD negotiators confirmed an agreement had finally been reached. CSU regional party leader and senior negotiator Alexander Dobrindt subsequently praised the outcome of negotiations as having effectively resolved long-standing disputes between the coalition partners.

"It's about time that Germany has the prospect of a government. In that sense, it is a good morning," Dobrindt said.

The parties had missed an earlier deadline on Sunday and were forced to continue with talks which lasted throughout the entirety of Monday and Tuesday.

More than five months after national elections in September 2017, the only remaining obstacle to the formation of a federal government in Germany is now a referendum among SPD members on whether to join another "grand coalition."

As widely expected, Angela Merkel will lead the new government again as chancellor, according to media reports, a post she has already occupied for more than 11 years. The CDU will also control the federal ministries of economics, defense, agriculture and education.

The SPD has in turn secured the right to nominate federal ministers in prestigious departments such as foreign policy, finance and labor, as well as in the areas of families, justice and environment.

Newspaper Sueddeutsche Zeitung reported SPD's Martin Schulz would assume the cabinet post of foreign minister, whilst ceding the party leadership to SPD parliamentary faction leader Andrea Nahles. The influential mayor of Hamburg Olaf Scholz is tipped to become Germany's next finance minister.

CSU leader Horst Seehofer is to stand at the helm of an expanded interior ministry in the "grand coalition," including additional responsibilities for homeland security. CSU politicians will further head the government's transport, digital affairs and developmental aid departments.

Despite the relief expressed by the negotiators on Wednesday, fears persist that the referendum on the final coalition agreement promised to more than 400,000 party members of the SPD could still see the process of government formation falter.