"The government continues to regard the recognition of a Palestinian state as one of the final steps on the path to achieving a two-state solution," spokesman Stefan Kornelius said in a statement, adding that "Israel's security is of paramount importance to the German government".
Macron provoked an angry reaction from Israel when he announced on Thursday that his country would formally recognise a Palestinian state during a UN meeting in September.
The move came amid growing international alarm about the plight of the more than two million Palestinians in the Gaza Strip, where Israel's war on Hamas has triggered a dire humanitarian crisis and warnings of mass starvation.
Germany, long at pains to atone for the Holocaust, has been a strong ally of Israel and a supporter of its war against Hamas sparked by the October 7th, 2023 attack, though it has voiced criticism over the worsening humanitarian situation in Gaza.
Germany was not among the 28 Western countries that made a joint statement this week saying the war in Gaza "must end now" as civilian suffering had "reached new depths".
Berlin on Friday laid out four priorities where it said "long-overdue progress" was needed to end the war in Gaza.
"A ceasefire is needed in Gaza now," the statement said, also calling for the release of all hostages.
"Israel must immediately and drastically improve the catastrophic humanitarian situation in Gaza," it added.
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It stressed that "a viable political perspective for Gaza is necessary so that a temporary ceasefire can become a lasting peace" and that "there must be no further steps toward annexation of the West Bank".
"The German government is in constant contact with the Israeli government and international partners on this issue. It is prepared to increase pressure if progress is not made."
German Chancellor Friedrich Merz was due to hold a phone call on Friday with Macron and Britain's Prime Minister Keir Starmer to discuss the crisis in Gaza.
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