Merz, 69, scored an absolute majority of 325 against 289 in the secret vote in the lower house of parliament.
He takes over at the helm of a coalition between his CDU/CSU alliance and the centre-left Social Democrats (SPD) of the outgoing chancellor, Olaf Scholz.
President Frank-Walter Steinmeier was set to appoint him as post-war Germany’s 10th chancellor later on Tuesday, along with his cabinet, before Merz is due to visit Paris and then Warsaw on Wednesday.
His victory caps a long ambition to lead Europe’s biggest economy, which was first foiled decades ago by party rival Angela Merkel who went on to serve as chancellor for 16 years.
Merz’s eventual victory on Tuesday was bittersweet as the initial defeat – the first such outcome in Germany’s post-war history – pointed to rumblings of discontent within his uneasy coalition. (AFP)