The Socialist leader told the nation in a televised address that the extraordinary measure would go into effect on Sunday.

He said the government will use the state of emergency to impose an 11pm to 6am nationwide curfew, except in the Canary Islands.

The prime minister said Spain's 19 regional leaders will have authority to set different hours for the curfew, as long as they are stricter; to close regional borders to travel, and to limit gatherings to six people who do not live together.

"The reality is that Europe and Spain are immersed in a second wave of the pandemic," Mr Sanchez said after meeting his Cabinet.

The leader added he will seek the endorsement of the Parliament to extend the state of alarm for six months until May.

The state of emergency gives the national government extraordinary powers, including the ability to temporarily restrict basic freedoms guaranteed in Spain's constitution, such as the right to free movement.

Spain's government has already declared two states of emergency during the pandemic.

The first was declared in March to apply a strict home confinement across the nation, close stores and recruit private industry for the national public health fight.

It was lifted in June after reining in the contagion rate and saving hospitals from collapse.

The second went into effect for two weeks in Madrid to force the capital's reluctant regional leaders to impose travel limits on residents to slow down an outbreak in which new infections grew exponentially. It lasted until Saturday.

Spain reported almost 20,000 new daily cases and 231 more fatalities on Friday, taking the country's death toll in the pandemic to 34,752.

Australian Associated Press