US President Donald Trump's 20-point plan aims to end the Gaza war and release all remaining Israeli hostages, almost exactly two years after the October 7 attacks launched by Hamas.
German Foreign Affairs Minister Johann Wadephul will on Monday travel to Tel Aviv to discuss the plan with his Israeli counterpart Gideon Saar, his ministry confirmed to AFP.
The visit is an extension of a diplomatic visit to the region, which takes in Qatar and Kuwait on Sunday.
Merz meanwhile called Israeli Prime Minister Benjamin Netanyahu to "firmly" support the plan, according to a statement from German government spokesman Stefan Kornelius.
The chancellor also praised Israel's endorsement of the proposal and called the decision to withdraw Israeli troops from Gaza a "step in the right direction".
Netanyahu said he had agreed with Merz to "continue to put pressure on Hamas in order to secure the release of all the hostages," according to a statement released by his office.
During another phone call, Merz and Trump "agreed on developments in Gaza", favouring a "swift agreement" during discussions in Egypt, the spokesman added.
Wadephul on Sunday said Germany would "decisively commit" to the implementation of Trump's plan.
"For the swift implementation of the American plan ... rapid international cooperation is necessary," he said, adding that Berlin would be making "concrete offers" as a "partner for humanitarian aid, stabilisation and reconstruction" of Gaza.
The region as a whole requires stabilisation "with lasting security for all, (with) a political perspective for the Palestinians and finally the normalisation of relations between all states with Israel," he added.
On Sunday, Wadephul was meeting Qatari Prime Minister Mohammed bin Abdulrahman Al-Thani regarding "the immediate release" of the hostages, which he noted included German nationals.
He will also participate in Gulf Cooperation Council talks with EU and regional countries in Kuwait on Sunday and Monday.
Netanyahu hopes the release of Israeli hostages can be achieved "in the coming days", while Hamas partially accepted Trump's plan on Friday.
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