The country plans to prevent the purchase of any nicotine products to citizens born after 2010.
The move aims to prevent the next generation of Danes from touching any form of tobacco, Health Minister Magnus Heunicke told a press conference.
Under the current law akin to Australian tobacco laws, Danish citizens under 18 are banned from buying tobacco.
But around 31% of people aged between 15 and 29 still smoke, Heunicke said.
According to a survey commissioned by the Danish Cancer Association, 64% of respondents favour the plan to ban the sale of cigarettes to those born after 2010. Among 18-34-year-olds, 67% of those surveyed were in favour.
The proposed law is similar to the law recently passed in New Zealand, which sees a gradual ban on the sale of tobacco from 2027 by raising the age at which it can be purchased.
The Danish Social Democrat government also intends to tackle alcohol consumption amongst its young people.
The country is currently looking at raising the age limit for purchasing alcoholic beverages from 16 to 18 for all drinks containing less than 16.5% alcohol.