The show is set to run 5 times a week from the end of January on state broadcaster ARD's Einsfestival channel. The show will have German subtitles, breaking with the normal German habit of dubbing foreign productions.
Fallon took over the Tonight Show from Jay Leno in 2014 and has proved to be a hit with audiences. Sketches such as the history of rap with Justin Timberlake and cover songs with children's instruments subsequently went viral on Youtube and social media.
Fallon started off on Saturday Night Live in the 1990s before moving into acting. In 2009 he returned to the small screen when he hosted his own late night show for the first time.
Bayerische Rundfunk reports that the timing is perfect, because German has just lost its own iconic late night show host after Stefan Raab retired from TV Total this week at the end of 16 years on air.
The Tonight Show will run Mondays to Fridays at 11 pm.
Jimmy Fallon's best bits
Performing "Hello" with Adele and the Roots on kids' instruments
History of Rap with Justin Timberlake
Humming Stars Wars theme tune with the stars of The Force Awakens