Germany has imposed restrictions on the unvaccinated as it sought to break a dramatic surge in daily coronavirus infections exacerbated by the discovery of the Omicron strain.

Outgoing Chancellor Angela Merkel and her successor Olaf Scholz agreed with leaders of Germany's 16 states to bar the unvaccinated from access to all but the most essential businesses such as grocery stores, pharmacies and bakeries, Reuters reports.

They also agreed to pass legislation in the national parliament to make vaccination mandatory.

Eager to avoid lockdowns that could derail a fragile recovery of Europe's biggest economy, they kept businesses open to the almost 69 per cent of the population that is fully vaccinated as well as those with proof of having recovered from Covid-19.