The move targets Bavarian website operators by offering the ‘.bayern’ top-level domain as an alternative to ‘.de’.
Bayern Connect GmbH, which is majority owned by TLDH, has been awarded the contract by the Bavarian State Government.
Subsequently the group’s domain registry consultancy Minds+Machines will provide back-end services for the proposed new domain.
The company’s will receive a share of the revenues generated by the new domain.
"We view .bayern as a very significant win for Bayern Connect and for TLDH,” said chief executive Antony Van Couvering.
He added: “Germany has 82 million inhabitants, 62 million internet users and 15 million domain names registered under .de. By comparison, Bavaria has 12.5 million inhabitants.
“We foresee a long and mutually profitable relationship with Bayern Connect and the people of Bavaria through this initiative."