Mr Scholz, appearing together with leaders of the Greens and FDP, said the announcement is a “very good result” after days of exploratory discussions.
He said: “We have worked intensively this week … and talked a lot with each other to prepare everything for today’s consultation.”
“[It] makes clear that a government can be built in Germany that can ensure we make progress, progress that is possible and necessary.”
Formal coalition talks will begin as soon as next week, making a new German Government before Christmas much more likely.
On election day last month, the SPD came in first with 25.7 percent, narrowly beating Angela Merkel’s CDU/CSU, which sustained heavy losses and accrued just 24.1 percent of the vote share.