Plans to decorate German soldiers for gallantry ran into opposition from the country's Jewish community on Saturday.
The move could be seen as a revival of the Iron Cross awarded extensively to Hitler's troops during World War II, according to the Central Council of Jews in Germany.
The Iron Cross was "shamelessly abused" by the Nazis and is synonymous with the mass murders committed under Hitler, the council's secretary general, Stephan Kramer, said.
Kramer told Sunday's Rheinpfalz am Sonntag newspaper that he could not understand why attempts were regularly made to link up to such "disastrous" traditions.
German Defence Minister Franz Josef Jung disclosed plans on Thursday for a medal of honour to be awarded to German troops who risk their lives in the call of duty.
But Jung's spokesman said that, while the minister backed establishing a decoration for military bravery, there was no thought of reviving the Iron Cross.
The medal would be similar in shape to the Iron Cross, which is displayed on armed forces hardware, but which has not been used as a military decoration since the end of World War II.
Unlike other NATO members, today's Germany does not give awards for military gallantry. Instead there are medals for length of service and for tours of duty abroad.
The Iron Cross tradition was initiated by Prussian King Friedrich Wilhelm III in 1813. Some 3 million Iron Crosses were awarded by the Nazis, who abused it by placing a swastika in the middle.