They had also agreed to give the government a timetable of interim steps towards introducing deposit charges for non-refillable cans and bottles.

Initially, retailers will only refund deposits on cans and bottles returned to the stores where they were bought.

A senior court this week threw out an appeal to delay the launch.

The federal administrative court said on Thursday it will make a full judgment on the issue of deposits on January 16, but said there was no legal basis to prevent the launch.

The constitutional court, Germany's top legal body, is also set to make a ruling before the end of the year.

The German government is introducing a deposit of 25 euro cents for small containers and 50 cents for cans and bottles larger than 1.5 litres from January 1. Deposits are returned when the bottles and cans are disposed of in special recycling machines.

The government's plans and previous German courts' support for the directive have boosted shares in Norway's Tomra Systems Inc (TOM.OL), which makes recycling machines which accept waste bottles and repay the deposits.

Retailers and beverage manufacturers have long opposed the measure but the government says it is necessary because the percentage of cans and bottles being recycled - typically after being returned to the retailer - has fallen below a 72 percent minimum target set in 1997.

Environmental bodies say the measures support their campaign to clear three billion cans and bottles from Germany's streets.