German newspaper Bild am Sonntag claims a secret government panel composed of Chancellor Angela Merkel and eight ministers has halted arms exports to Saudi Arabia.
Germany in the past has exported considerable military goods to Saudi Arabia worth hundreds of millions of euros a year.
Bild am Sonntag cited unspecified government sources as saying that the decision was taken because of instability in the region. German officials declined to comment on the report, but noted that lawmakers would be informed of any decision.
Islamist insurgencies are affecting Iraq, Syria and Yemen. Saudi Arabia's longtime ruler, King Abdullah, died on Friday.