Angela Merkel is Time magazine's Person of the Year 2015

Time magazine on Wednesday named German Chancellor Angela Merkel its "Person of the Year 2015", saying her leadership has helped preserve and promote an open, borderless Europe in the face of economic turmoil and an ongoing refugee crisis.

Hailing her leadership, the magazine said it chose the German chancellor for the annual honor because her leadership has helped preserve and promote an open, borderless Europe in the face of economic turmoil and an ongoing refugee crisis.

Islamic State leader Abu Bakr Al-Baghdadi and Republican presidential hopeful Donald Trump were among the eight candidates shortlisted by Time magazine on Monday for its annual 'Person of the Year' title.

Prime Minister Narendra Modi, Reliance Industries chairman Mukesh Ambani and Google's India-born CEO Sundar Pichai were among the initial 58 global leaders, business chiefs and pop icons that Time had named as contenders for its annual honour but the three did not make the final shortlist.

Modi was a contender for the honour in 2014 also and while he was not chosen the Person of the Year by Time editors, he was named winner of the readers' poll, securing more than 16 per cent of the almost five million votes cast.

Among the final eight contenders are Al-Baghdadi, who Time said "as leader of ISIS has inspired followers to both fight in his self-declared caliphate of Iraq and Syria, and also stage attacks in countries like Tunisia and France".