The city’s mayor said the annual event will not take place this year because “we just can’t afford” to bring people together as they normally would.
Speaking on LBC radio, Mr Khan said: “I can tell you that there will be no New Years fireworks this year like in previous years.
“We just can’t afford to have the number of people gathered on New Years Eve.”
The mayor added, “What we’re working on is doing something that people can enjoy from the comfort and safety of their living room on TV. ”
Mr Khan said the exact details of what would happen on December 31 have not been finalized.
He said: “As soon as we can reduce this I will let Londoners and people across the country know.
“We cannot afford to lose this place because New Years Eve is such a great opportunity for the rest of the world to see how wonderful our city is.
“Especially in times of recession, we need to continue to invest in our city and the people who come to London”
More than 100,000 tickets were reportedly sold for last year’s exhibition – and many more people have roamed the streets of the capital to watch.
The mayor said there would be no signage in London to prevent people from meeting.
“Nothing will happen in town,” Khan said.
“So the key thing to avoid will be a reason for people to come to town. “