Germany's surplus could reach 14 billion euros.

BERLIN (Reuters) - Germany could post a budget surplus of 14 billion euros in 2017, a magazine reported on Saturday, giving Chancellor Angela Merkel's conservative bloc more negotiating room as it seeks to forge a new coalition with the Free Democratic Party and the Green Party.

Solid economic growth and increasing tax revenue fueled the new projection, Der Spiegel reported.

The Ministry of Finance had previously projected a stable budget, although economic institutes last month had already predicted record overall primary surpluses for the government -- which also includes state governments -- for the coming years.

The new projection is good news for Merkel's conservatives, the pro-market Free Democratic Party, and the environmentalist Green Party, whose combined proposals will amount to around 100 billion euros in new spending over the next four years.

The three groups resigned themselves to further talks next week after making little progress on immigration and climate policy during 11 hours of talks on Thursday.

Senior officials from both parties traded barbs in a series of interviews, but Manfred Weber, a senior member of the Bavarian conservative Christian Social Union group, said on Friday that his party is still seeking to reach an agreement by the end of the year.

No comment was immediately available from the Finance Ministry, which is due to publish its next fiscal revenue projections in mid-November.

The surplus will allow the government to cover €7 billion in projected costs associated with a nuclear waste deal and €6,7 billion in costs for immigrants without drawing on a €20 billion reserve account created during the height of the migration crisis in 2015.

Reporting by Andrea Shalal