Angela Merkel, the German chancellor, faces crucial talks on forming a new government on Sunday following last month’s damaging election losses.

Immigration is set to dominate the agenda as Mrs Merkel meets with Horst Seehofer, the leader of her Bavarian sister party and an implacable opponent of her refugee policy.

Mrs Merkel is trying to put together a new coalition with the pro-business Free Democrats (FDP) and the Green Party.

Mrs Merkel on Saturday made her most explicit backing yet for the so-called "Jamaica" coalition, because the colours of the three parties match the black, yellow and green of the Caribbean country's flag.

She said in Dresden: “I advise everyone to concentrate on what lies ahead. First between the CDU and (Bavarian) Christian Social Union (CSU) then with the Free Democrats (FDP) and Greens and to understand the mandate that voters handed us."

Before she can begin negotiations, however, she has to put her own house in order.

Mr Seehofer is threatening to pull his Christian Social Union party (CSU) out of any coalition unless Mrs Merkel agrees to an annual limit on the number of refugees allowed into Germany.

But with both the FDP and the Greens opposed to any limit, it is a demand Mrs Merkel can ill afford to give in to.