A corresponding agreement signed in the Danish border town of Padborg would allow police to respond "fast and flexibly" to calls and emergencies, Danish Justice Minister Karen Hækkerup said.
The move was necessary due to the use of new routes by criminals operating across the border, she added.
Aimed primarily at organized crime rings, the new mode of operation will cover a territory extending 25 kilometres into Denmark and 30 kilometres into Germany. Officers will be armed, but it was stressed that weapons will only be used in emergency situations.
Germany already has similar border-policing agreements with Poland and the Netherlands
Special joint border analysis teams have been set up to coordinate implementation the new strategy, including standardization of technical equipment, including weapons, issued to units concerned.