Jamie Green will join Timo on row two, having only lost P3 late on, while veteran Bernd Schneider, who announced his retirement from the DTM this week, completes the top five.
"The second row is okay and a good basis for the race," said Green. "Qualifying went well, but I didn't manage to pull three perfect sectors together."
"A good qualifying; my C-Class was perfect," Schneider added. "With my final set of tyres I pushed a little too hard at the Sachs corner. A better grid position was possible; however, Paul was just too fast today."
Further down the order Bruno Spengler was sixth followed by Audi duo Martin Tomczyk and Tom Kristensen in seventh and eighth - the last two drivers' to make the final shoot-out.
"The car was great, but I struggled at the first sector to find a good rhythm. At least, I'm on the third row though," Bruno noted.
Mike Rockenfeller missed out on making it into Q3 by three tenths and will start in ninth. He still had the honour however, of being the best-placed driver with a year-old car.
Of the rest, Audi Sport Team Phoenix duo Oliver Jarvis and Alexandre Premat were tenth and eleventh, with Gary Paffett twelfth, followed by ex-F1 man Christijan Albers and Maro Engel.
"I made a few minor mistakes and therefore I was not able to qualify further up the grid," said Paffett.
Mathias Lauda had to settle for 15th, with Ralf Schumacher a disappointing 16th and female racers Susie Stodart and Katherine Legge 17th and 18th.
"Unfortunately, I damaged my front splitter during the first part of qualifying before the red flag came out," Ralf explained. "Afterwards I was not able to do better. I look forward to a hopefully exciting race and keep my fingers crossed for Paul."
Markus Winkelhock brings up the rear and will start last after crashing out in Q1 going into the Motodrom. The session was stopped as a result of his off and thus everyone - bar the Audi Sport Team Rosberg man - made it into Q2.