Documents seen by the Rheinische Post (RP) reveal plans agreed between the Chancellery and the Ministry of Food, Agriculture and Consumer Protection (BMEL) to end advertising at transport stops and on Litfaßsäulen (columns with space for advertising posters).
There will also be no tobacco advertising in cinema screenings open to people below the age of 18.
A spokeswoman for the BMEL told The Local that the ministry could not comment on policies currently in discussion.
Media had reported in recent days that the Chancellery was threatening to veto plans to end tobacco advertising by 2018.
The advertising changes will amend a law that comes into force next year implementing EU guidelines on tobacco.
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Under the new law, two-thirds of cigarette packs' surface area must be covered by deterrent photos showing damaged lungs or the effects of cancer.
Tobacco lobbyists in Brussels fought the proposed changes hard, saying that in Germany 10,000 tobacco-related jobs would be under threat.