German Interior Minister says Angela agrees on solution to crisis over future of Germany's scandal

German Interior Minister Horst Seehofer said on Sunday that Chancellor Angela Merkel's ruling coalition had agreed on a solution to a crisis over the future of Germany's scandal-tainted spymaster that had threatened their alliance.

The coalition parties said on Tuesday that Hans-Georg Maassen would be removed from his role as domestic intelligence chief after he faced accusations of harboring far-right views but, in a move that prompted public outrage, also granted him a transfer to a better-paid job at the Interior Ministry.

That compromise came unstuck on Friday when Andrea Nahles - leader of the center-left Social Democrats (SPD), the junior partner in the conservative-led alliance - said it was a mistake.

Seehofer said on Sunday that the parties had agreed Maassen would work as a special adviser in the Interior Ministry in future without a pay rise.