Germany will not prohibit naked short-selling on transactions completed in a single day under certain conditions, coalition sources told Reuters on Monday.

The sources also said that Germany may possibly extend the ban on naked short-selling on certain assets to 24 months. The Finance Ministry would have to inform the parliament about any such extension to 24 months, the sources said.

Last month Germany announced a surprise ban on naked short sales of euro zone government bonds and related credit default swaps and shares of the top 10 German financial institutions, and subsequently agreed to widened the ban.

(Reporting by Matthias Sobolewski; writing by Erik Kirschbaum, Paul Carrel and Stephen Brown)