German police warn of NYE 'terror attack' planned in Munich

German police said on Thursday that they had "indications that a terror attack" was being planned for New Year's Eve in the southern city of Munich, as they called on the public to avoid large gatherings and two key train stations.

"Current indications show that a terror attack is being planned in Munich. Please avoid gatherings of people and the Munich and Pasing train stations," police said in a tweet.

Both stations have been evacuated, they said, and train services were no longer running at the two  stations. 

The attackers have an "Islamist background," police added.

A police spokeswoman told AFP that they had "reliable information" that a group was planning to act as festivities were well under way on New Year's Eve.

Although the train stations were evacuated, the spokeswoman said it could not be ruled out that the attackers could seek another target.

European capitals were on high security alert, with Brussels and Paris both scrapping fireworks for New Year's celebrations.

Belgian police were holding five people early Friday over an alleged New Year plot in Brussels and also arrested a 10th suspect over last month's attacks in Paris.

In Berlin, the police presence was stepped up at the Brandenburg Gate, where hundreds of thousands of people have gathered for festivities. All large bags and backpacks were been banned from the site of the huge street party.

Authorities in the West also were on edge as 2016 arrived, especially in the wake of the Paris attacks in November that killed 130 people and a deadly 2 December gun attack in San Bernardino, California by a Muslim couple believed to have been inspired by IS ideology.

In New York City, where one million people were expected to gather in Times Square to watch the traditional ball drop ceremony, thousands of police officers were deployed, including hundreds who are part of a new anti-terror force.

Meanwhile, US authorities said on Thursday they had arrested and charged a 25-year-old man over an alleged attempt to launch a New Year's Eve attack in Rochester, New York in the name of the Islamic State (IS) group.

Emanuel Lutchman was charged with attempting to provide material support to the IS group, the Justice Department said, a charge that carries a maximum penalty of 20 years in prison.