0349 GMT January 19, 2019
The SPD has been allocated the foreign, finance and labor ministries, while the CDU will retain the defense and economy portfolios, according to media reports, euronews.com reported.
The same reports claim the interior ministry will be taken by Angela Merkel's Bavarian ally, Horst Seehofer. Seehofer has been taking a tough line on immigration up till now.
Major differences during the talks appear to have been on labor reforms and healthcare.
The deal could still be derailed by the SPD's rank and file membership in a vote, the result of which will be known in three to four weeks. SPD membership has surged by tens of thousands in the last few days as campaigners are calling on people to join the party just to vote down the grand coalition plan.