A hotchpotch of parties including Danish minority representatives and a group of self-styled pirates appear set to take power in Germany's northernmost state.

The emerging coalition led by the opposition Social Democrats would oust the previous center-right government of Chancellor Angela Merkel's Christian Democrats and Free Democrats who also rule at the federal level.

The Pirate Party, which campaigns for transparency and Internet freedom, saw the biggest gains, and on Monday signaled it would tolerate a government of Social Democrats, Greens and the Danish minority party SSW.

This would boost the so-called stoplight coalition's one-seat majority in the state parliament to seven votes on issues the Pirates support.