Angela Merkel has reportedly told her party that she is prepared to step down as its leader but remain as German chancellor.

News agency dpa cited unidentified party sources in its report as the leadership of Mrs Merkel's party met following a state election in which both her conservative Christian Democratic Union and its partners in the national government, the centre-left Social Democrats, lost significant ground.

Mass-circulation daily Bild reported, citing sources in the CDU leadership, that Mrs Merkel said she would not run again for the party leadership.

Mrs Merkel's predecessor, Gerhard Schroeder, stepped down as leader of his party in 2004 but remained chancellor.

Angela Merkel has reportedly told leaders of her conservative party that this will be her final parliamentary term as Germany's chancellor.

The comments came as Mrs Merkel met the leadership of her party following the Hesse state election in which her Christian Democratic Union party lost ground.

It had been widely assumed that this would be Mrs Merkel's final term as chancellor, but before the remarks reported by the dpa news agency she had not offered any confirmation.

The current parliamentary term ends in late 2021.

Earlier in the meeting, Mrs Merkel had told party members that she would not run again for the party leadership at a conference in December.

PA Media