The Bundesbank is to repatriate most of the gold bullion that Germany sent to vaults abroad for safety during the Cold War.
The bank said nearly 700 tonnes of gold will be moved from New York and Paris to Frankfurt and by 2020, half of its gold bars will be in its vaults. The Bundesbank currently keeps less than a third at home.
The gold was sent away after World War II as a precaution against an invasion from the Soviet Union.
The Bundesbank will no longer keep any of its reserves in Paris, as both countries use the euro.
It will reduce the amount it holds in New York from 45% to 37%.
However, no gold will be moved out of the Bank of England's vaults and the Bundesbank will still keep 13% of its total reserves in London.
Federal auditors have criticised the government for not being certain of just how much gold there is or whether all the bars are genuine.