Focus magazine reported on Sunday that the cities of Hamburg and Munich had been considered as Germany's new tweeting hub, but that the capital city had won out. Until now the German side of the business has been run from London.
A Germany head has already been found, the magazine said.
Hamburg is already home to important bases for Google and Facebook, while the Munich area hosts regional headquarters of Apple, Microsoft and Amazon.
Berlin is keen to strengthen its reputation as a centre for internet-based businesses, particularly start-ups and creative new companies.
Twitter currently has around 140 million active users sending around 340 million short messages every day.
Merkel turned down a personal invitation to join from Twitter CEO Jack Dorsey, who had a meeting with her in the capital earlier this month.
On his way to meet her, Dorsey excitedly tweeted, “Just landed in Berlin for a visit with Chancellor Angela Merkel. I've been wanting to meet her for a while: the world needs her on Twitter.”
But shortly afterwards Merkel's spokesman Steffen Seibert said she did not share his view, and said the world would have to be satisfied with her text messages and weekly video vodcasts.
Seibert himself is a keen twitterer, however, at least in an official capacity.