Hockenheim could find itself placed on a revised 2020 race calendar in place of Silverstone, the traditional host of the British Grand Prix.
The prospect of a race being held in the UK this year appears unlikely, as the government plans to place all international arrivals in quarantine for 14 days.
Formula 1 was seeking an exemption from the regulations, however it is believed that the government will not allow the championship to operate under separate rules.
On Tuesday, F1 confirmed that the quarantine measures would mean no races can take place in the country this year.
The Daily Mail reports that a decision on the matter is expected within the next 24 hours, and Hockenheim is being lined up as a replacement venue.
The British Grand Prix has been present on the F1 calendar every year since the world championship's inception 70 years ago.
Hockenheim's future in F1 has been in doubt for some time due to financial struggles, with Mercedes becoming the title sponsor of the 2019 race, which was voted by fans as the best F1 race of the 2010s.
It was reported last month that the venue was open to hosting a race on the 2020 calendar in order to fill up spots. F1 CEO Chase Carey admitted that tracks that did not appear on the original schedule could feature this year.
The Daily Mail reports that F1 is in advanced talks with Hockenheim over an event taking place this year.
Germany has been easing measures of COVID-19 lockdown in recent weeks, with the Bundesliga becoming the first major football league in Europe to resume last Saturday.