"We all hope for a rapid end to this terrible war by Russia against the Ukrainian people, but unfortunately this is not in sight," Defence Minister Boris Pistorius said in a statement.
"This is why Germany will supply all the help that it can, for as long as necessary," he said.
The package, worth $3 billion, will include 30 additional Leopard-1 tanks, Marder armoured vehicles, air-defence systems and surveillance drones, the ministry said.
Der Spiegel magazine said it would be Germany's largest since the outbreak of the war.
It comes as Ukraine President Volodymyr Zelensky is expected to travel to Rome on Saturday for talks with political leaders, which could be followed by a trip to Berlin.
German officials have not confirmed the visit, but Berlin police have opened an inquiry after details of a possible trip attributed to the force appeared in the media.
Western allies have delivered increasingly powerful weapons to Kyiv since Russia sent its forces into Ukraine in February 2022, though so far not the advanced fighter jets that Zelensky has requested.
Germany last year provided military support worth two billion euros and had earmarked 2.2 billion euros for this year, though details had not yet been finalised.
Berlin has also promised to supply its more advanced Leopard-2 tanks, and has begun training Ukrainian soldiers on their use.
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