Revellers urged to keep NYE plans

Police will keep a watchful eye on New Year's Eve revellers around the country after heightened terrorist chatter.

But they don't want the millions of people crowding Australia's city streets to be alarmed as they see in the new year.

In Sydney, police plan to be out in force to make sure people feel safe while watching the fireworks and other celebrations.

Less than three weeks after a lone gunman took over a cafe in the city's centre, police are urging people to continue their planned festivities.

"We're not oblivious to the risks at hand and we're asking people to be alert and not alarmed and to come in and enjoy the night," NSW Police acting deputy commissioner Jeff Loy said.

"We've worked hard in relation to counterterrorism issues at a national level and even at an international level and we understand the environment we live in, we're not blind to that."

Prime Minister Tony Abbott revealed before Christmas there had been an increase in "terrorist chatter" after the Sydney siege.

Australia's terror threat level remains at high, meaning an attack is likely.

On Tuesday, the Islamic State propaganda magazine Dabiq praised siege gunman Man Haron Monis and reiterated an earlier call for "lone wolf" terror attacks.

"There will be others who follow the examples," it said.

"All that the West will be able to do is to anxiously await the next round of slaughter."

In Victoria, deputy police commissioner Lucinda Nolan said Australia's heightened terror rating had been taken into account in planning but didn't think it would stop people celebrating.

"We're very confident about the arrangements and I think Melburnians and the rest of Victorians will come out and celebrate in numbers just because that's the sort of people we are," she said.

State police have planned their own security arrangements for the evening.

The national security guidelines say the federal police can only intervene in state matters when responding to actual terror attacks.