Berlin now expects Europe's largest economy to grow by 1.1 or 1.2% in 2020, Handelsblatt said, up from a previous forecast of 1.0%. For 2021, the government will keep its growth forecast of 1.5%, the newspaper said.
An Economy Ministry spokeswoman declined to comment.
Handelsblatt said the prospect of a "relatively controlled" Brexit and a Phase 1 trade agreement between the United States and China had improved Germany's economic outlook.
"In addition, the labour market remains robust. Record employment continues to ensure high domestic demand."
An exceptionally high number of working days this year will also lift the German economy, which expanded by 0.6% last year, its weakest growth since 2013.
The government is due to present its updated growth forecast next Wednesday.
(Reporting by Michael Nienaber; Editing by Susan Fenton)
