"In order to preserve the the French-German balance (in EADS) while no private investors have been found to secure German interests, KfW will temporarily take over" a stake of 7.5 percent being put up for sale by Daimler, the ministry said in a statement.
"The details have yet to be worked out but the government is working from the assumption that the deal will be carried out next year," the ministry said.
But it insisted that "the door remains open for potential private investors."
Daimler currently holds a stake of 15 percent and 22 percent of the voting rights in the European Aeronautic Defence and Space Company and is looking to sell initially half of that stake.
The German government had hoped to find a private buyer for the shares - whose current market value stands at €1.2 billion to €1.3 billion ($1.6 billion to $1.8 billion) - but was forced to step into the breach after no-one came forward.