Angela Merkel will seek a fourth term as German chancellor in next year's elections, according to party sources.
Members of Mrs Merkel's CDU party are meeting in Berlin on Sunday to prepare for their last annual conference before next September's election.
The 62-year-old conservative, who has led her country since 2005, is under pressure domestically following her decision last year to allow around one million migrants to settle in Germany.
Regional elections since have shown a sharp decline in support for the CDU. However, Mrs Merkel is still likely to go in to next year's election as the strong favourite.
She is widely seen as a stabilising force in Europe which is suffering from numerous challenges including the migrant crisis, the struggling eurozone and Brexit.
Last week Mrs Merkel held talks with outgoing US President Barack Obama in Berlin.
The two, who have a good relationship, discussed a range of issues, including the war in Syria, relations with Russia and the future of EU-US trade.
Mrs Merkel has been less conciliatory towards Mr Obama's successor than most other world leaders.
Following Donald Trump's victory she wrote a letter to the President-elect which said: "Germany and America are connected by values of democracy, freedom and respect for the law and the dignity of man, independent of origin, skin colour, religion, gender, sexual orientation or political views.
"I offer the next President of the United States close cooperation on the basis of these values."
