Talks between Angela Merkel's Christian Democratic Union (CDU) and Free Democratic Party (FDP) has failled to yield any result to form coallition government.
Germany has been under leadership vaccum eversince the elections that concluded in September 24, resulted in a hung parliament.
The talks have also missed deadlines as it has in the past in many occasions.
A poll conducted by Welt online found that as much as 61.4 per cent of people surveyed said a collapse of talks would mean an end to Merkel as chancellor. Only 31.5 per cent thought otherwise.
"It is better not to govern than to govern badly," said Lindner, adding that "we cannot and will not answer for the spirit of the exploratory papers".
Meanwhile Angela Merkel and her CDU has refused to be a part of the minority government which means if the leadership crisis persists then Germany would have to face another election.
The parties also differed on environmental issues, with the ecologists wanting to phase out dirty coal and combustion-engine cars, while the conservatives and FDP emphasise the need to protect industry and jobs.
(With PTI inputs)