Berlin  - The leadership of Germany's Social Democrats, who suffered a stinging election setback a week ago, nominated a 50-year- old outgoing minister, Sigmar Gabriel, as new party leader on Monday, sources said.

Rifts were evident as the choice was made behind closed doors at a Berlin meeting of the party's leadership. The nomination will be put to a national conference in Dresden next month as the party tries to put its defeat behind it.

"The party is in a difficult situation. We'll be analysing critically what happened at the election," said Gabriel on ARD public television after the decision.

In a vote by the 45-member national executive, three-quarters voted for Gabriel, with the rest opposed or abstaining.

A talented debater, Gabriel was briefly premier of the German state of Lower Saxony. He is set to succeed Franz Muentefering as party leader.

Gabriel remains Germany's environment minister until the federal election victors, Chancellor Angela Merkel's Christian Democrat bloc and the Free Democratic Party, set up a new coalition government.

The Social Democratic Party (SPD) won only 23 per cent of the vote on September 27, down 11 percentage points from four years ago.

A leftist figure, Berlin mayor Klaus Wowereit, seeking the party vice-presidency, won less than two-thirds support in a sign that the leadership remains divided.

Leftists in the executive have voiced anger that the leadership question had been settled by a small circle and not opened to wider debate.

Andrea Nahles, a leftist, was nominated as general secretary of the party in the committee meeting. Outgoing Foreign Minister Frank- Walter Steinmeier is to become leader of the opposition, as head of the SPD parliamentary group in the Bundestag legislature.  dpa