CSU leader Horst Seehofer to continue to serve as Interior Minister.
A compromise has been met between Germany's Chancellor and Cabinet Minister.
Horst Seehofer has dropped his threat to quit over a dispute about managing immigration issues.
Angela Merkel's coalition government was on the verge of toppling.
Interior Minister, Horst Seehofer says, "We have reached an agreement after very intensive negotiations between the CDU and CSU. We have a clear agreement on how to prevent illegal migration in the future at the borders between Germany and Austria."
The standoff came about over Seehofer’s plan to turn back any asylum-seekers at Germany's borders who had registered in another EU country. But Merkel had refused saying there needed to be other European nations involved.