Angela Merkel is “at the end of career” following her failure to form a government, according to Jenny Hill, the BBC’s Berlin correspondent.
Mrs Merkel has led the German government – and played a major role in the direction of the EU – for the past 12 years.
However, according to the bomshell interview, the German leader faces an “imminent demise” amid reports that her party is scrambling to find a “new voice for the country”.
Mrs Merkel is desperately trying to cling to power by tying up a grand coalition deal with the Social Democrats – but so far a deal has eluded her.
Jenny Hill told the BBC’s The World This Week: “This is her twilight. For Merkel, this is the beginning of the end.
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“That feeling has grown since the failure of the coalition talks. It was there during the refugee crisis when some questioned her leadership.
“It was certainly there during the election when she pulled in a poor result for her party, but it’s at its highest right now.
“This really is going to be the end of things for her. She has been weakened by the election and her party is being torn apart by infighting.”
Mrs Merkel has failed to strike a coalition deal after three-way talks with the Free Democrats and the Greens collapsed last week.
Her fourth term has since been plunged into doubt, with the youth wing of her conservative party demanding a deal with the Socia Democrats be done by Christmas.
If Merkel fails again to put together a coalition, the only options would be a minority government or a new election, both of which would push the country further into instability.
Mrs Merkel’s party, the Christian Democrat Union (CDU) is reportedly casting about for a younger politician to take over the reigns.
Ms Hill also noted that Mrs Merkel’s presence on the world stage, particularly in the EU, had been irrevocably diminished.