High-quality, ultra-precise processing of surfaces is of high importance for high-tech industry and requires a good depth control of processing, a low roughness of the machined surface and as little as possible surface and subsurface damage but cannot be realized by laser ablation processes. Contrary, electron/ion beam, plasma processes and dry etching are utilized in microelectronics, optics and photonics. Here, we have demonstrated a laser-induced plasma (LIP) etching of single crystalline germanium by an optically pumped reactive plasma, resulting in high quality etching. A Ti:Sapphire laser (λ = 775 nm, EPulse/max. = 1 mJ, t = 150 fs, frep. = 1 kHz) has been used, after focusing with a 60 mm lens, for igniting a temporary plasma in a CF4/O2 gas at near atmospheric pressure. Typical etching rate of approximately ~ 100 nm / min and a surface roughness of less than 11 nm rms were found. The etching results were studied in dependence on laser pulse energy, etching time, and plasma – surface distance. The mechanism of the etching process is expected to be of chemical nature by the formation of volatile products from the chemical reaction of laser plasma activated species with the germanium surface. This proposed laser etching process can provide new processing capabilities of materials for ultra—high precision laser machining of semiconducting materials as can applied for infrared optics machining.