BERLIN—Police in the northern German city of Braunschweig banned Sunday’s Carnival parade following threats with an “Islamic background,” the police said in a statement, just hours after shootings in Denmark.

The parade is the largest of its kind in northern Germany attracting around 250,000 visitors each year and usually takes place the weekend before Lent. It was due to start midday and was canceled about 90 minutes before the scheduled start. Police asked all visitors to keep away from the parade’s planned route and not...