This year, police will turn back everyone showing up at the square for the countdown to midnight sounded by the chimes on the Kremlin's tower clock, Moscow security chief Alexei Mayorov was quoted as saying on city hall's website.
The official reason given for the unprecedented closure of the square, one of Russia's top tourist attractions, was the filming of a live concert for state-run Channel One television that only a select audience will be allowed to attend.
Speaking to Kommersant radio former lawmaker Alexander Klyukin said the surprise move was "the same as closing off Times Square in New York."
Moscow has introduced a raft of tighter security measures since the terror attacks in Paris in November.
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The attacks added to the nervousness caused by the downing of a Russian passenger plane over Egypt's Sinai in late October, killing 224 people in what Moscow says was an act of terror.
Metal detectors manned by security guards have been installed at the entrances to shopping centres and parking lot attendants have been given permission to check the trunks of suspicious vehicles.
In other measures, Russia's main television tower Ostankino was sealed off with barbed wire this month, additional CCTV cameras have been installed in pedestrian areas of Moscow and police now patrol metro stations with sniffer dogs.