The man, aged 76, was found dead in the sea some distance from the shore by a jet-ski rider. The rider brought his body back to the beach about 1.30pm.
The tragedy occurred opposite the Royal Palm Beach Front resort. Patong beach was crowded today.
The man's death in the water off Phuket's holiday west coast follows the drowning on Thursday of Norwegian Chris Roger Hanssen, 55, at Karon beach, the next major beach south of Patong.
At least 30 drownings have occurred along Phuket's popular beaches or at day-trip destinations so far this year. The death toll is the largest in memory.
Authorities ceased releasing statistical updates on the number of drownings on Phuket in April last year and no official figures have been released since then.
Many holidaymakers on Phuket fail to swim between the yellow and red flags where lifeguards are on patrol.
Patong, Karon and several other Phuket beaches are too long for the limited number of lifeguards to do more than protect the tourists who take their advice.
A marine safety summit for Phuket was proposed four months ago by British envoys but no date has been set.
Phuketwan has been given the German man's name but will not publish it until we are advised that his relatives have been notified.
His body was taken to Patong Hospital.
Drownings of tourists on Phuket are likely to be among the topics discussed when Phuket's honorary consuls meet with Governor Maitree Intrusud on November 26.