Apart from expanding bilateral trade cooperation, the two leaders, who are scheduled to hold talks on October 5, are also expected to discuss the stalled India-EU Free Trade Agreement negotiations and ways to take it forward, sources said.
Merkel will be arriving on October 4, they said, adding a number of pacts are expected to be inked during her stay in the country.
Merkel last visited India in 2011 and met Prime Minister Narendra Modi in Germany in April this year.
The German Chancellor is also likely to travel to Bangalore during her stay in India.