Olaf Scholz on Thursday became the first German chancellor to light Berlin's central Hanukkah menorah, in a sign of "solidarity" with Jews amid a surge of anti-Semitism during the Israel-Hamas war.

Wearing a kippa, Scholz also urged the "immediate" release of Israeli hostages held by Hamas as he addressed a crowd gathered at the Brandenburg Gate for the start of the Jewish festival of lights.

He then boarded a crane to ignite the menorah's first candle with a torch, accompanied by Rabbi Yehuda Teichtal.

"I hope the light of this candelabra will shine across this square long beyond the eight days of the Hanukkah celebration," Scholz said.

"It stands for hope and optimism – We especially need both in these days after the Hamas terror attack on Israel."

Amid a sharp rise in hate crimes against Jews in Germany since the October 7 attacks in Israel, Scholz pledged to protect Jewish life eight decades after the Holocaust.

"I am happy that many citizens are supporting the Jewish community in word and deed and showing compassion and solidarity with our Jewish neighbours, friends, colleagues," he said.

"That is why I'm also happy to be here today," he said, adding that he wanted to underscore that Jews were an "inextricable part" of German society.

Scholz called it "unacceptable" for Jews in Germany "to have to be afraid to practise their religion, their culture."

The ceremony, held under tight security, was attended by two family members of a German-Israeli hostage, Itay Svirsky. They lit the torch that was handed to Scholz to ignite the first candle.

Hamas militants stormed out of Gaza into Israel on October 7, killing around 1,200 people, mostly civilians, and taking hostages, 138 of whom remain captive, according to Israeli officials.

In response, Israel vowed to destroy Hamas and has carried out air strikes and a ground offensive that have killed more than 17,000 people, mostly women and children, according to the Hamas-run health ministry. (AFP)