Former European Parliament President Martin Schulz has become the German Social Democrats' Chancellor candidate for the general election this year.

The SPD party has also officially nominated him as its leader, with a formal election due in the party in the middle of March, according to the Frakfurter Allgemeine Zeitung.

The party's current head Sigmar Gabriel will not be running for the Chancellor's office as he announced himself on Tuesday. Gabriel is taking over the Foreign Minister's office from Frank-Walter Steinmeier, who will be elected President by the federal Parliament of Germany.

Schulz is expected to pose a substantial challenge to Angela Merkel, who has served as the German Chancellor for three terms in a row. 

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