The proposal is reportedly contained in a government civil-defense-strategy document, which says that people should stock 10 days worth of food and a sufficient supply of water, energy, money and medicine that would allow them to stay put long enough for the government to respond.
Germany suffered two Islamist attacks last month and a shooting onslaught by a disturbed teenager.
Last month an axe-wielding attacker went on a rampage on a train in Germany, injuring up to 18 people.
"The population will be encouraged to stockpile food for ten days", it said, adding that five days' worth of water - at an estimated two litres per person per day - should also be set aside.
An interior ministry spokesperson contacted by AFP confirmed that the cabinet was due to adopt a civil defense strategy but declined to confirm details of the plan or comment on the newspaper report.
People should "prepare appropriately for a development that could threaten our existence and cannot be categorically ruled out in the future", the report states.
The Interior Ministry is careful in the report to note that an attack on Germany's territory is unlikely to require a conventional deployment of ground troops.
The strategy was originally commissioned by a parliamentary committee in 2012.
In 2015 alone, Germany welcomed more than 1 million refugees, primarily those fleeing the Syrian war zone, and have seen as much of Europe a corresponding increase in the number of terror attacks.
It also mentions the necessity of a reliable alarm system, better structural protection of buildings and more capacity in the health system, the paper said.