Germany's Free Democratic Party (FDP) on Sunday backed the coalition agreement negotiated with the Social Democratic Party (SPD) and the Green Party, paving the way for the three-way alliance to form a new government next week.

Some 92.2 percent of party members voted in favor of the deal at a party conference in Berlin.

Party leader Christian Lindner, who is set to take over as Germany's next finance minister, sought to allay the concerns of the FDP's more conservative wing, describing the coalition agreement as one that pushes centrist policies. 

The deal "does not push our country to the left, rather it wants to lead the country forward," he said.

The SPD already approved the 177-page coalition deal at a party conference on Saturday, with over 98 percent approval from delegates. However, the Greens are waiting for the results of a membership ballot that will conclude on Monday and is also likely to endorse the agreement.

If all parties approve the plans, the agreement will be signed by all parties a day later, allowing Social Democrat Olaf Scholz to formally seek election as chancellor in the Bundestag on Wednesday.

The new alliance will replace the grand coalition of the conservative Christian Democratic Union (CDU) and the SPD – the two largest party blocs in parliament, which have dominated German politics since the end of World War II.

The center-left SPD, Greens and FDP have been in talks since the SPD emerged as the largest party following Germany's election on September 26.