There will be no fireworks on New Year’s Eve, with the usual display replaced by a celebration event in Trafalgar Square.
A “broadcast spectacular” which will be shown live on BBC One and iPlayer, will look back at 2021’s highlights.
The event will also look forward to 2022, featuring a live choir, and previews of events such as London hosting the UEFA women’s Euro 2022 tournament.
Tickets to the event, which is still subject to the approval of a licencing application, will be available by public ballot.
The Mayor of London, Sadiq Khan, is encouraging people to make the most of the city’s bars, clubs, restaurants, and other attractions to ring in the New Year.
The capital’s bridges, buildings and trees will be illuminated along the South Bank - as part of the mayor’s Let’s Do London Winter Lights’ Season - and the city’s famous Christmas lights, ice rinks and festive markets will also be open.
Mr Khan said: “London is the best place to be this New Year’s Eve.
“Our amazing city is open and thanks to the incredible work of the NHS, our key workers and the rollout of the vaccines, we can look forward to 2022 with renewed hope.
“This year, as well as a brand-new celebration event in Trafalgar Square, we can look forward to a live broadcast spectacular which will showcase our magnificent city on BBC One.
“London is simply magical during these winter months and after all we have endured as a city we have every reason to celebrate as we look ahead to the new year.
“For those heading out, our top-class attractions, theatres, restaurants, bars and entertainment venues are the envy of the world and are ready to welcome you with open arms.
“They are the perfect setting to ring in the new year in style alongside family and friends while supporting our hospitality, entertainment and night-time sectors which have been hit so hard by the pandemic.”
Kate Nicholls, CEO of UKHospitality, said: “After all the isolation we endured during the last 18 months, this New Year’s Eve will see London about as open as it can be to visitors from home and abroad.
“The banks of the Thames will be open, lit up, and a huge range of venues and visitor attractions will provide a warm welcome to those enjoying a memorable night out.
“New Year’s Eve is the perfect time to enjoy London and celebrate with the family and friends you missed most during the dark days of lockdown – let’s make the most of being able to socialise together again in our world class venues.
“Better still, while you’re enjoying London, you’ll be helping both the capital and the nation to get back on the road to prosperity, in safe and welcoming venues.
“London leads the world in hospitality and tourism and drives those sectors’ fortunes across the nation.
“There’s so much to do in London that you’ve probably forgotten about, so there’ll be more than enough to keep any visitor happy.
“My advice would be to book early to ensure you have a smooth plan through to the midnight celebrations and beyond.”