But the deal will still need to be approved by SPD members.
Which party runs which ministry isn't decisive, she said.
"I am convinced the coalition treaty can be the basis of a good and stable government", she said, adding that solid finances, infrastructure investment and digitalization would be key focuses for the government.
Germany has already broken its post-Second World War record for the longest time taken between its latest election on September 24 and the swearing-in of a new government. That is still at least several weeks away.
Stances within the deal that may spark broader disagreement at the bloc level include Germany's support for "fairer taxation" for internet giants such as Amazon, Apple, Google and Facebook, as well as the government's desire to introduce a single, unionwide set of rules to calculate the taxable profits of companies.
Emmanuel Macron's election as French president last May with a commitment to work for closer European Union ties with Germany has raised hopes in Brussels of significant progress, for example on new eurozone rules, despite differences between Paris and Berlin.
Schulz is now reportedly planning to hand his party leadership to former labour minister Andrea Nahles and move to the foreign ministry.
Yet before addressing Europe's future, Schulz faces hard work at home.
Merkel and Social Democratic Party (SPD) leader Martin Schulz had sat down Tuesday morning for what was supposed to be the final day of haggling over details in a process begun in early January.
The healthcare and employment reforms she has agreed to court the SPD will prove expensive, but Germany is strong economically with high employment and rising real wages, so it will be able to weather the cost. German President Frank-Walter Steinmeier helped prod the CDU and the Social Democrats to the negotiating table.
Faced with snap elections that could further boost the AfD or the prospect of heading an unstable minority government, she opted to woo back the SPD - her junior partner for two of her three terms since 2005.
Schulz's zigzag course has undermined his authority.
By Monday night, however, two points that are important to the Social Democrats still had not been worked out: curbing the use of temporary work contracts and trying to narrow differences between Germany's public and private health insurance systems.
Hamburg Mayor Olaf Scholz is slated to take over as finance minister, according to sources familiar with the negotiations.
The Interior Ministry, also held by the CDU, would go to Bavaria's CSU, which has pushed hard to curb the number of migrants entering Germany.
The mass influx drove the rise of the far-right Alternative for Germany (AfD) party which scored nearly 13 percent in September elections.
Some conservatives fear that rushing ahead with European integration would create too much of a burden for German taxpayers.