People can buy a hole in Niederzimmern near Leipzig for €50. In return the authorities will repair it - and put a personal message on top, Christoph Schmidt-Rose told local radio station MDR.
"It's about using a funny idea to find people prepared to help us sort out our roads" who can then "sort of feel like they own the hole in the road," Schmidt-Rose said.
He said that some potholes had already been snapped up by television channels and newspapers wanting to advertise.
Experts estimate that months of severe winter weather have left as many as 40 percent of Germany's roads badly damaged, while the recession has made it hard for local authorities to patch them up.