Chancellor Angela Merkel is expected to push for a “lockdown light” in talks with Germany’s regional leaders, as the number of Covid-19 cases soars and hospital beds fill up.
The proposed new restrictions would include closing restaurants and bars and putting strict limits on private and public gatherings.
However, schools, daycare’s and shops are due to remain open.
“We need quick and decisive steps to break the new wave of infections,” Finance Minister Olaf Scholz said.
Germany’s leaders will meet to discuss the proposed legislation.