The parties' leaders will meet at Steinmeier's official residence in Berlin to discuss "the situation after the breakdown of the coalition talks".
Last Sunday, the Free Democratic Party (FDP) withdrew from the coalition talks with Merkel's Christian Democratic Union (CDU), its sister party Christian Social Union (CSU) and the Greens, which left a new election as one of the options.
Schulz indicated on Friday that the SPD might consider coalition talks with the CDU/CSU alliance, although his party had initially ruled out this possibility.
European leaders have stressed the importance of Germany getting its political house in order ahead of the European Council summit in December.
Merkel, who has baulked at the idea of a repeat election, on Saturday said she wanted to form a government "very soon".
The head of the group told the paper the conservatives should pursue a minority government if they fail to agree a deal with the SPD.
The poll showed that 41% of Germans against the re-election of Angela Merkel to the post of Chancellor in case of re-election.
Merkel, whose conservatives won most parliamentary seats in a September 24 vote but bled support to the far right, has said she wants to maintain sound finances in Germany, cut some taxes and invest in digital infrastructure.
A majority government would be possible under the so-called Grand Coalition, if CDU/CSU joined their 246 seats with the SPD's 193.
To that end, last week Merkel commented that she would be open to new elections instead of creating a minority government.
That would mean higher state spending and smaller tax cuts than would have been agreed with other potential partners.
He too warned against making too many concessions to the SPD, urging the CDU to stand firm on stricter migration policies and its commitment to a balanced budget. "There shouldn't be a grand coalition at any price".
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