FRANKFURT, Jan 12 (Reuters) - The German government has come to a final agreement on taking a stake in the German division of Dutch power grid operator TenneT IPO-TTH.AS, part of a broader shift towards renewable energy, news outlet Politico reported on Monday.

Citing government budget documents, Politico said that 7.6 billion euros ($8.9 billion) in funding had been officially earmarked for the deal.

This includes 5.76 billion euros for the purchase of shares from TenneT as well as for a capital increase to fund grid upgrades, with the remainder to be given to German state development bank KfW, which is managing the transaction, in the form of guarantees.

TenneT and the German finance ministry did not immediately reply to requests for comment.

Berlin said in November it was considering acquiring a 25.1% stake in TenneT's German unit, the country's largest high-voltage grid operator, to help fund investments needed for the energy transition.

Berlin already holds minority stakes in two other major high-voltage power grid firms, TransnetBW EBKG.DE and 50Hertz ELI.BR.

The German government had previously set aside 5.8 billion euros for the purchase as well as for further payment obligations.

The Dutch government, TenneT's parent, said in September it would sell a 46% stake in its German unit to an investor consortium, following a failed attempt to sell it to Berlin last year under the previous government.

TenneT is a key player in Europe's energy transition, operating critical infrastructure needed to connect renewable generation to consumers and industry.

($1 = 0.8556 euros)

(Reporting by Ludwig Burger and Friederike Heine)

((ludwig.burger@thomsonreuters.com;))