She justified the move by saying that despite the fact that the Islamic State (IS) has suffered significant defeat in Iraq, it still has an "ideological foothold."
"The fight against IS has left behind deep wounds and scars in the country. It takes patience for these scars to heal and for Iraq to become strong," the minister said.
The current mandate for German troops' stay in Iraq, issued by the country's parliament, the Bundestag, expires on October 31.
The mandate is expected to be prolonged, but the idea faces backlash from members of the Social Democratic Party, who are a part of the ruling coalition along with Angela Merkel's Christian Democratic Party and Seehofer's Christian Democratic Union, Sputnik news agency reported.
German forces in Iraq are tasked with training the country's troops in logistics, paramedic training and defusing explosive devices. Also, roughly 150 German soldiers are tasked with training Kurdish forces of Peshmerga.
Reporter's code: 50101