Chancellor Angela Merkel's conservatives and the center-left Social Democrats are nudging closer to a coalition agreement after reaching new compromises on infrastructure, environment and other issues.

The two sides have set Sunday as a deadline to wrap up their negotiations, though they've budgeted two extra days for talks that they're widely expected to use.

The dpa news agency reported Friday that following an earlier agreement on migration, pensions and education, the two sides have reached consensus on expanding Germany's infrastructure for electric cars, health care financing, and tax benefits to promote research and development.

If a coalition agreement is reached, the Social Democrats' membership still needs to approve it. A rejection would leave a minority government or fresh elections as the only viable options.