German Chancellor Angela Merkel says she aims to get a government in place as quickly as possible after she was left scrambling to find a way to govern when three-way coalition talks collapsed last Sunday.

"Europe needs a strong Germany, it is desirable to get a government in place quickly," Merkel told a party meeting, adding, however, that her acting government was able to carry on day to day business in Europe's biggest economy.

She added she was prepared to talk to the Social Democrats (SPD) after the centre-left party reversed an earlier decision and said it was prepared to talk to Merkel's conservatives, but she stressed any talks should be based on mutual respect.