Alternative for Germany, a far-right political party under surveillance by intelligence services for suspected extremism, made huge gains in the country’s general election Sunday, with the center-right Christian Democratic Union likely to lead coalition talks to form the next government.

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.

The conservatives’ expected victory comes despite a historically strong showing by the far-right Alternative for Germany, or AfD.

Germany's opposition conservatives won the national election on Sunday, putting leader Friedrich Merz on track to be the next chancellor while the far-right Alternative for Germany came in second, its best ever result, projections showed.

The Christian Democratic Union has won a plurality in the Bundestag, preliminary exit polls suggested Sunday, while the far-right AfD has come in second.

Germany’s centre-right CDU and CSU parties have won the federal elections with about 28.5 to 29 per cent of the vote according to exit polls, paving the way for CDU leader Friedrich Merz to become chancellor at a time of economic and political upheaval in Europe’s largest democracy.

The far-right AfD likely will score its best ever result as Europe's ailing economic powerhouse lurches rightwards. The conservative CDU/CSU bloc is set to win, but will be unlikely to secure a majority.

Single parties rarely win majorities in German elections, so Friedrich Merz's CDU will need the support of one or more parties to secure a majority in government. His most likely

German opposition leader Friedrich Merz's conservatives were on course for a lackluster victory in a national election Sunday, while Alternative for Germany nearly doubled its support, the strongest showing for a far-right party since World War II,