OTTAWA - Prime Minister Stephen Harper is set to meet with German Chancellor Angela Merkel next month.

It will be Merkel's first official bilateral visit to Canada, though she has been here before for the G8 and G20 summits.

Harper calls Germany an important friend and valued ally to Canada.

He says he looks forward to speaking with Merkel about the challenges facing the global economy.

Also on the agenda will be the ongoing negotiations for a Canada-E.U. free trade deal.

The two leaders found themselves at odds earlier this summer after Canada refused to contribute to a global bailout package through the International Monetary Fund.