The two world leaders, who have a chequered history, will meet at the German government’s 18th century palace 50 miles north of Berlin.
Steffen Seibert, a German government spokesman said: “Chancellor Angela Merkel will host Russian President Vladimir Putin on August 18, 2018 at federal government’s Schloss Meseberg.”
He failed to clarify the exact details of the upcoming meeting, but noted they will likely discuss Russia’s ongoing annexation of Crimea and energy cooperation.
The official told RIA Novosti earlier on Monday: “You can’t say what exactly will be discussed at such a high-level meeting.
“I can imagine that bilateral ties, the Syria conflict, eastern Ukraine reconciliation, as well as energy cooperation will be on the agenda.”
President Putin and Chancellor Merkel last held face-to-face meetings in the Russian resort city of Sochi in May, and tackled issues including President Donald Trump’ decision to withdraw from the Iran nuclear deal and the political transition in Syria.
The world leaders are expected to discuss the progression of the natural gas project Nord Stream 2, which intends to expand an existing pipeline between Vyborg in Russia to Greifswald in Germany, in order to increase annual capacity up to 110 billion cubic metres.
The project has nevertheless drawn sharp criticism form Eastern European nations, as the project would send increased natural gas directly to central Europe while avoiding countries further east.
Countries including Poland and Ukraine have raised concerns that the project will increase Russia’s leverage and make Eastern European nations more vulnerable.
Ukraine is set to lose up to $3billion a year in pipeline transit fees if Russia can divert natural gas across the Baltic Sea and away from a pipeline currently running through Ukraine.
Ukrainian president Petro Poroshenko commented on the project, stating: “This is not a commercial project, it is not economical or profitable, it is absolutely a political project.
“There is no point, from the economic point of view, creating this project. This is absolutely a geopolitical project.”
However Mr Seibert noted that the project still intends for Ukraine to “retain a role as a transit country”.
He added that nothing had been concluded, stating: “The talks have not concluded.”
The project was also slated by US President Donald Trump, who accused Germany of being “totally controlled by Russia” at the Nato summit in Brussels in July.
Speaking to Nato Secretary-General Jens Stoltenberg, he said: “We’re supposed to be guarding against Russia and Germany goes out and pays billions and billions of dollars a year to Russia.
“I think that’s very inappropriate.
“Germany is totally controlled by Russia, because they are getting 60 to 70 percent of their energy from Russia and a new pipeline.”
Mr Stoltenberg rejected President Trump’s accusation, stating that European nations “understand that when we stand together also in dealing with Russia, we are stronger”.