Under the plans, Germany will deploy Tornado reconnaissance jets, refuelling aircraft, a frigate and up to 1,200 military personnel to the region.
The Bundestag lower house of parliament will hold a vote on Wednesday.
Merkel's cabinet is made up of her own conservatives and the centre-left Social Democrats (SPD), with whom she shares power.
Britain to hold vote on launching Syria air strikes
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British Prime Minister David Cameron said he would hold a debate and vote in parliament on Wednesday to decide whether to launch air strikes against Islamic State in Syria.
"I will be recommending to Cabinet tomorrow that we hold a debate and a vote in the House of Commons to extend the air strikes that we've carried out against ISIL in Iraq, that we extend that to Syria," he said in a televised statement.
(Reporting by William James; editing by Elizabeth Piper)
