Despite the drama over Mr. Seehofer's resignation threat on Sunday, several political analysts said the most likely outcome was for both parties to walk back and find a last-minute compromise.
The conflict between Angela Merkel and her Interior Minister Horst Seehofer is so severe that either she loses face or they both lose their jobs and Germany is without a chancellor, political scientist Werner J. Patzelt told RT.
Sources said Seehofer rejected Merkel's assessment that the EU-wide measures would "have the same effect" as his demand to turn away at the border asylum-seekers already registered in other European Union nations.
She said Greece and Spain had agreed to take back migrants stopped at the Bavarian-Austrian border who are proven to have entered their countries first - a move she hoped would allay Mr Seehofer's concerns.
"The German government has truly made a mountain out of a molehill", said Gerald Knaus, the architect of the 2015 migration deal between the European Union and Turkey.
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A row over migration within Germany's governing coalition will also limit gains for the single currency . In each of the past six days, the yuan has slid, taking it to the lowest levels since December 2017.
Merkel could have fired Seehofer.
Under the German deal, migrants who have already applied for asylum in other European Union countries will be held in transit centers on the German border with Austria while Berlin negotiates bilateral accords for their return.
It was a spectacular turnabout for a leader who has been seen as the standard-bearer of the liberal European order but who has come under intense pressure at home from the far right and from conservatives in her governing coalition over her migration policy.
Alternatively it could break up the two parties' decades-long partnership, depriving Merkel of her majority in parliament and pitching Germany into uncharted political waters. Representatives of the three elements of the coalition, the CDU, CSU and SDP are meeting to discuss the agreement.
Merkel's other coalition, the Social Democratic Party, has yet to agree to the deal.
Public anger and fear about the newcomers has given rise to the far-right, anti-Islam Alternative for Germany (AfD) party, which entered parliament past year and threatens Seehofer's CSU in Bavarian state polls in October.
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"We are open to compromise", Bavarian State Prime Minister Horst Söder told an event in Bavaria.
"We are well into the final chapter of the Merkel era", he said.
The public approval has been largely in favor of Merkel's policies since 2015 but the support started to wane as the country began experiencing problems absorbing the new residents, the Times reported.
He insulted Merkel in a newspaper interview saying, "I will not let myself be dismissed by a chancellor who is only chancellor because of me".
That decision convulsed European politics, fuelling the rise of anti-immigration parties, including the far-right Alternative for Germany party, which now threatens to unseat the CSU in October's regional elections.
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And if Uruguay can lock out Ronaldo again and send European champions Portugal home, Godin will surely have a lot to do with it. However, they have lost their last three games in the World Cup knockout stages (1 goal scored, 5 conceded).