Will it be released in the short term?
Merge is bound to be implemented. However, there's no timeline yet. First, this Pull request has to be finalized as part of the ligit2 project. Maybe some additional higher level APIs will also be required. Then it will be made available through LibGit2Sharp.
Is there a possibility or alternative to provide remote merging?
Have you considered temporarily shelling out to "git.exe"?
This is what GitHub for Windows and Git-Tfs do, for instance.
Partly leveraging LibGit2Sharp, and partly relying on git.exe for everything which is not available yet.
Then, once a required feature has been added to LibGit2Sharp, replace the call to git.exe with a call to LibGit2Sharp.
Provided you've put in place some light abstraction layer and some unit tests, this shouldn't be a too bumpy road.
Update
Merge feature is now available in LibGit2Sharp (see pull request #608)