A Thursday deadline was initially set to secure a provisional deal allowing the German Chancellor to form a three-way partnership with the FDP and Greens.
Mrs Merkel has been locked in talks with the parties for six weeks following her party’s worst election result since 1949.
A breakdown of the talks could mean fresh elections in Germany since the Social Democrats (SPD) – the second biggest party – have made clear they have no appetite for joining another “grand coalition”.
More to follow…