Popular daily newspaper said on Tuesday that Germany's equivalent of MI6 - learned from its Italian counterpart of the ISIS plots to bring bloodshed to holiday resorts.
According to the report the Italians were informed of the terror plans from a credible source in Africa.
They say the would-be killers had formed "concrete plans" to pose as refugees serving with drinks and snacks or hawking beach accessories and T-shirts.
Media said the plans involve the use of automatic weapons on crowded waterfronts, suicide bombings and explosive devices buried in sand beneath sun loungers.
ISIS, which is squeezed financially as the international coalition ranged against it in the Middle East hampers its movement and military actions, is looking for more soft targets in the west and came up with the holiday bombing campaign.
According to media the beaches which intelligence chiefs say are definitely targetted include resorts in southern France, the Costa del Sol in Spain and both coasts in Italy.
The newspaper quotes a high ranking official: "It could be a whole new dimension of terror. Holiday beaches cannot be protected."
Last year 38 people, 30 of them British, died when a gunman opened fire on a beach in Tunisia.
The threat stems from Boko Haram, the terror group from Nigeria which has allied itself with ISIS and co-operates with the leadership at a high level.
It is understood that regular African travellers to Europe, who so far have disguised their loyalty to the fanatics, will be activated for the murder campaign.
Seck Pouye, police chief of the Senegalese town of Saly, said: "These people travel regularly to Italy and other places with visas and documents.
“They are not illegal because they are viewed as business people and traders. That is what makes them so dangerous."
Germany has so far not issued any travel warnings to its people about a potential terror threat at foreign holiday destinations, Express reported.
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