The German Chancellor and French President had vowed to dramatically reform the 19-nation monetary union by introducing a joint eurozone budget.
However insiders have claimed that Ms Merkel and Mr Macron have been cancelled the joint plans which were due to be announced this March at the EU Summit.
An EU official told Germany’s Der Spiegel magazine: “The matter has been cancelled. There is simply nothing to announce.”
German representatives also told the magazine that Ms Merkel’s government had no time to deal with the future of the eurozone during the coalition negotiations.
A spokesman for the federal government said that work on reform plans would be “intensified in close partnership with France” after the formation of the new government.
Ms Merkel and Mr Macron had promised in December last year to present joint plans for a Eurozone reform in March.
In particular, the French President wants to comprehensively reform the monetary union and a budget for the euro area as well as the introduction of a new euro zone finance minister.
The news comes after Ireland, Sweden, Denmark, Estonia, Finland, Latvia, Lithuania and the Netherlands all poured cold water on the ambitious plans last week.
In a blow to the French and German leaders, finance ministers from the eight northern member states said it was too early to push ahead with the proposals.
The ministers, in a damning joint statement, said any reforms should focus on completing the EU banking union and improving compliance with Brussels’ budget rules.
They said: “Stronger performance on national structural and fiscal policies in line with common rules should have priority over far-reaching proposals.”
Meanwhile Finland’s Finance Minister Petteri Orpo said: “There are ‘nice to have’ reforms, like a common finance ministry, but they do not solve the real problems.
“That will only be done through pragmatic steps.
“We should not implement quasi-reforms, but be honest and acknowledge which reforms actually fix the problems we’re facing.”
The northern group said it supports the idea of expanding the European Stability Mechanism (ESM) fund into a European monetary fund (EMF).
Additional reporting by Monika Pallenberg.