Exit polls show the center-right Christian Democratic Union party leading, with the AfD party heading towards the strongest showing of the far-right since World War II.

Polls are open across Germany as the world’s third largest economy chooses a new leader to guide it through an era of febrile immigration debates and souring relations with Washington.

But the other big story is that the anti-immigration Alternative for Germany (AfD) party is set to become the second biggest force in German politics. Four years ago they polled just 10.4% and now they're on course for 19.5%-20%, according to the exit polls.

Chancellor Olaf Scholz's center-left Social Democrats were headed for a stinging defeat and a likely third-place finish.

Germany’s centre-right leader Friedrich Merz won federal elections on Sunday, clearing his path to become Chancellor at a time of economic and political upheaval for Europe’s biggest democracy. Merz’s CDU/CSU secured around 29 per cent of the vote,

Friedrich Merz is on course to become post-World War II Germany’s 10th chancellor, the culmination of a yearslong political career that was once sidelined by his party’s iconic leader

Germany’s conservative leader Friedrich Merz emerged as the winner in Sunday’s election, but the results gave his Christian Democrat-led bloc just one clear path to power and facing intense pressure to move quickly to form a government.