The Telegraph reported that those who are not fully vaccinated could be barred from non-essential travel and limited to meeting just one person from outside their household from Friday (19 November) in the region of Saxony.
Under the country’s current rules, the measures will come into force if more than 1,300 hospital beds in the region are occupied by Covid patients for three consecutive days.
Bed occupancy reportedly crossed the threshold on Monday (15 November).
Saxony and Bavaria are among a number of German regions that already require proof of vaccination for people to enter bars, nightclubs, cinemas, restaurants and leisure centres.
The Bavarian regional government is said to be pushing for the same restrictions to be introduced nationwide.
Markus Soder, the Bavarian regional leader, told The Telegraph: "In the end, it comes down to this: a kind of lockdown for the unvaccinated. It cannot be otherwise.
"The intensive care units are full of unvaccinated people who could have protected themselves… If we had vaccinated faster, like Spain and Portugal, we wouldn’t have this situation in the hospitals. Politicians can’t help it if people won’t get vaccinated."
Austria and the Netherlands are also reportedly considering fresh lockdown measures for those without a Covid vaccine.