Chancellor Angela Merkel's party leads the German election with an estimated 42%, an exit poll suggests
Despite the large lead, Ms Merkel's conservatives may be forced to govern in a "grand coalition" with the centre-left Social Democrats, the exit polls showed.
Ms Merkel's previous junior partners, the pro-business Free Democrats, narrowly failed to re-enter the parliament, it was reported after the polling booths closed.
The exit polls gave Ms Merkel's conservatives at least 42%, the Social Democrats 26%, but the Free Democrats just below the 5% needed to re-enter parliament.
The result means the most likely scenario will be a left-right "grand coalition" between Ms Merkel's Christian Democrats and their traditional opponents.
Ms Merkel's led a fractious "grand coalition" during her first term in 2005-2009, with the SPD's chancellor candidate this time around, Peer Steinbrueck, as her finance minister.
Analysts say the coalition negotiations could drag on for weeks, with the SPD insisting on a national minimum wage.
A physicist by training Ms Merkel is only the third person to win a third term in Germany, after the immediate post-war leader, Konrad Adenauer, and Helmut Kohl, the father of German re-unification.
If she serves at least until 2017, she will become Europe's longest serving female leader beating Margaret Thatcher who was Britain's prime minister for 11 years.
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