Berlin, Oct 15 (IANS): German Chancellor Angela Merkel's conservatives will hold a second round of talks with the Green Party, a day after their meeting with the main opposition Social Democrats (SPD) failed to produce a potential coalition partner.

Greens co-chairman Cem Ozdemir said Monday the first round of talks last week did not leave him optimistic, adding he assumed a final assessment would be reached Tuesday, Xinhua reported.

The Green Party, which wants more efforts on clean energy and greater rights for immigrants, captured 8.4 percent of the vote in the federal election Sep 22.

Merkel's bloc of Christian Democratic Union (CDU) and its Bavarian sister party Christian Social Union (CSU), the biggest vote-winner, has never shared power with the Greens at the national level and there is scepticism on both sides over whether they can bridge their differences.

Meanwhile, a third round of exploratory talks with the centre-left SPD, the other coalition option, is scheduled for Thursday.

Merkel's CDU/CSU bloc won 41.5 percent of the vote in the election, leaving it by far the biggest party in parliament but still short of a ruling majority, necessitating its search for a coalition partner.

Recent polls show most Germans support a repeat of the so-called "grand coalition" between the CDU/CSU and SPD, as in Merkel's first term in 2005-2009.

However, both sides have been unwilling to compromise on key issues, including the level of a nationwide legal minimum wage.

The SPD wants to introduce a national minimum wage of 8.50 euros ($11.35) per hour. Merkel's party opposes the plan but supports deals struck by employers and trade unions at industry and regional levels.

Merkel is expected to decide this week on the party with which she wants to launch formal coalition talks.