The move, which will come into force on Friday, will bring the total number of people in England living in tier 3 to around 8.7 million.
The shift follows warnings some hospitals are now treating more Covid-19 patients than at the peak of the pandemic earlier this year.
Nottinghamshire will join Warrington, Liverpool City Region, Greater Manchester, Lancashire and South Yorkshire in the âvery highâ risk category.
West Yorkshire is also expected to placed into tier 3, although political leaders in the northeast are resisting âarguing it would cause economic devastation for âno reasonâ.
From Friday people in Nottinghamshire will be banned from socialising with anyone outside their household while indoors, in private gardens or at most outdoor venues.
All pubs and bars must close, unless they are serving substantial meals.
Ministers have also agreed with local leaders that betting shops, car boot sales and auction houses, with some exceptions, must shut their doors and alcohol cannot be sold in shops after 9pm.
Saunas and steam rooms must also close, and although leisure centres and gyms can remain open, indoor exercise classes are discouraged. Hairdressers and barber salons can also remain open.
Residents are also advised they should try to avoid travelling outside the area, for fear of passing on the virus.
Matt Hancock, the health secretary, said ministers had acted because infection rates were ârising sharplyâ across Nottinghamshire.
âI understand how difficult life is under these restrictions and the impact they have on families and businesses, but we never take these decisions lightly,â he added.
The restrictions will be reviewed in 28 days.
Earlier, Bristol introduced an entirely new category of restrictions, which it called âtier 1 plusâ and said would come into force in days.
The measures will include Covid marshals patrolling the city, greater local control over test and trace and a focus on working adults between the ages of 30 and 60 years old.
The phrase âtier 1 plusâ is a local term and not something from government, a Bristol City Council spokesperson told The Independent.
Marvin Rees, the mayor of Bristol, said the approach would mean the city remains in tier 1 but with the addition of âtargeted interventionsâ to influence peopleâs behaviour and stem the spread of the virus.