In their first bilateral meeting after Mr Brown assumed office two months ago, the two leaders expressed concern over the ineffectiveness of global plans aimed at reducing poverty by 2015.
They said in a joint statement that an international health partnership between Britain, Germany, Canada and Norway, the WHO and the World Health, would be launched on September 5.
The partnership would ensure the streamlining of aid in developing countries so that healthcare facilities are easily accessible to poor people, they said.
Mr Brown and Ms Merkel also watched a friendship football game between Germany and England after their meeting.
