"The ones who are against the Jews living in Germany or put in question the existence of Israel cannot have a place in our country," the draft read.
The German lawmakers would reportedly like the government to consider whether prosecution for the public burning of Israeli flag or anti-Semitic motto could be initiated as well.
According to the newspaper, the proposal will be introduced shortly before the International Holocaust Remembrance Day on January 27.
The initiative comes amid renewed tensions between Palestinians and Israelis triggered by the decision of US President Donald Trump to recognize the city of Jerusalem as the capital of Israel. The city has been contested by both sides since the Six-Day War in 1967, as a result of which Israel gained control over the holy site of the three religions. The move also provoked protests in Muslim countries across the Middle East and Muslim communities worldwide.