The leaders of Germany's ruling coalition reached agreement on a package of reforms during a meeting on Wednesday, a source familiar with the talks told dpa late in the evening.
Details of the agreement will be presented at a news conference on Thursday morning.
The agreement followed more than seven hours of talks by Chancellor Friedrich Merz's conservative bloc - made up of the Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU) - and the centre-left Social Democrats (SPD).
The coalition has spent months working on a broad reform package aimed at strengthening Germany's social security system, providing tax relief for households and helping revive Europe's largest economy after a prolonged period of weak growth.
