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German will be taught in Kendriya Vidyalayas as an additional foreign language while modern Indian languages will be taught in Germany, according to an understanding reached between the two countries today to put a lid on a controversy that had erupted about a year back.

An MoU was signed between the two countries on the occasion of German Chancellor Angela Merkel's visit and under the understanding, a pact will be signed between the KV and Max Mueller Bhavan to formalise the arrangement.

He added that side by side modern Indian languages will be taught in Germany.

"We have a lot of scholars who are interested in that (learning Indian language)," Ms Merkel said earlier during a joint media interaction with Prime Minister Narendra Modi.

This marks an end to the controversy which had erupted about a year after KVs decided to stop teaching German as third language and replaced it with Sanskrit.

The governing board of KV had in its meeting on October 27 last year directed that teaching of German language as an option instead of Sanskrit be discontinued.

The new understanding is a sharp departure from the earlier agreement of 2011 between the two countries to offer German as a third language in the KVs.

HRD Minister Smriti Irani has been maintaining that teaching German was against the spirit of the three-language formula and violated the national education policy.

The KV's decision had triggered an uproar and had threatened to derail ties between the two countries. It was criticised also by Merkel who raised the issue during her meeting with Modi on the sidelines of the G-20 summit in Brisbane in November last year.

The government, though, had announced that German would continue to be taught as an additional or hobby subject from class VI to VIII.