Quoting unnamed party sources, German public broadcaster ZDF and Bild daily said the Social Democratic Party's rank and file voted "yes" to a new partnership with Merkel's conservatives.
The party's leadership is due to announce the results shortly.
The make or break vote was the last hurdle in the way of Merkel's fourth term in office and essentially ends a political stalemate that has plagued the country since September's inconclusive elections.
Stung by their worst post-war results, the SPD had initially ruled out another four years under Merkel's shadow.
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