Extra barriers have been put up to keep revellers out of the square because of continuing building work.
Police are repeating their annual advice to keep out of central London.
One critic said the lack of entertainment on New Year's Eve made London a "laughing stock".
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My advice really is to see in the New Year close to home or at an organised event
"
Chief Supt Paul Toland
The pedestrian area of Trafalgar Square is closed to the public because of work to extend the pedestrian area to the steps of the National Gallery.
Scotland Yard said people going to the West End would be disappointed unless they had tickets to events in pubs, clubs and restaurants.
Chief Superintendant Paul Toland of the Metropolitan Police said every year they advised people to stay out of central London.
"This year the pedestrian area will be shut, reducing the amount of space available for you to celebrate in.
"
It is the laughing stock of the global community - it is nothing short of a disgrace
"
Bob Bone, New Year's Day parade organiser
"Other areas such as Leicester Square and Parliament Square also see huge crowds, so my advice really is to see in the New Year close to home or at an organised event."
A spokeswoman for the Greater London Authority (GLA) said it was difficult for the capital to stage a public display such as the fireworks in Sydney and Berlin.
She said the GLA wanted to extend services on the London Underground beyond 0130 GMT.
"That would be the foundation for any kind of New Year's Eve celebration for central London," she said.
Instead there would be an emphasis on daytime celebrations with a New Year's Day parade.
'Black hole'
But Bob Bone, who runs the London parade, described the lack of celebrations on 31 December as a "laughing stock".
"London remains a black hole of entertainment on New Year's Eve - with the streets left to the drunks to make their own amusement," he said.
"It is the laughing stock of the global community - it is nothing short of a disgrace.
"Tourists from all over the world will be scratching their heads and kicking their heels again on New Year's Eve."