Chancellor Angela Merkel's coalition has to tweak domestic legislation after the country's highest court in June demanded some changes to comply with the German constitution.
However, fears had grown that German ratification might be delayed until after the Sept. 27 election as some politicians in Merkel's conservative camp demanded bigger changes.
"Basically, we have agreed in political terms," said Norbert Roettgen, conservative parliamentary floor leader, adding the aim was for the main five parties to agree on the law to ensure its smooth passage through parliament in September.
The new law would oblige the government to inform parliament "thoroughly and as early as possible" about European Union intergovernmental business, said Roettgen.
However, it appears to stop short of the demands made by Merkel's Bavarian sister party, the Christian Social Union (CSU), which had used the court ruling to push for greater parliamentary influence over German decision-making at EU level.
Germany is one of four countries which have yet to ratify the treaty, aimed at streamlining EU decision-making.
All 27 members have to ratify the treaty for it to take effect and a long delay would have been an embarrassment to Merkel, who spearheaded efforts to reach a deal on the treaty in 2007, and could have boosted opposition to it in other states.
Under the new rules, the Bundestag lower house would get access to all the relevant documents, and parliament should be able to issue a view on any subject the government is discussing at EU level.
While these views would not be binding, as the CSU had demanded, and the government would be completely free to act, it would have a duty to justify its decisions to parliament, said Roettgen.
The government would have to show "what it has done, what it has achieved and what it has not achieved and where it has deviated from the express view of parliament", said Roettgen.
The CSU also failed in its efforts to grant Germany's Constitutional Court the last word on interpreting the Lisbon Treaty, said Roettgen.
The conservative bloc, which comprises Merkel's Christian Democrats (CDU) and the CSU, will discuss the draft on Friday. Germany, Ireland, Poland and the Czech Republic are the only EU states yet to ratify the Treaty. Ireland is to vote again in October after a referendum last year rejected it.
Luxembourg's Prime Minister Jean-Claude Juncker said last week the changes demanded by some Germans threatened to bring "sclerosis" to the bloc and were a graver problem than Ireland's looming vote.
(EurActiv with Reuters)
