Unvaccinated people will no long able to enter non-essential shops, and cultural and recreational venues in Germany.
The country’s parliament will also consider imposing a general vaccine mandate.
German Chancellor Angela Merkel said the measures were necessary in light of concerns that hospitals in Germany could become overloaded amid a surge in COVID-19 infections.
She further noted that the infections are more likely to be serious in those who did not receive their vaccination.
“The situation in our country is serious,” Merkel told reporters in Berlin, calling the measures an “act of national solidarity”.
The agreement also includes new restrictions on large gatherings, which would affect events such as Bundesliga football matches.
Germany has announced record coronavirus fatalities and infections as its total death toll passed 100,000.
Another 351 people have died from coronavirus, bringing the total since the start of the pandemic to 100,119.
The number of new daily cases hit a new record of 75,961.
The surge in infections poses a real challenge for the new-elected government.
Many European countries have seen an increase in cases recently driven by the Delta variant of the virus, including Russia, Ukraine, Germany, and Poland.
Earlier last month, German MPs voted in favour of a new set of measures to fight the pandemic.
