More than one million people usually flock to the city’s foreshore to watch the spectacular display but Lord Mayor Clover Moore said she was concerned this would pose a major health risk given the unpredictability of the coronavirus crisis.

Ms Moore said Sydneysiders should be watching the display in the comfort of their own home or at their local pub or club, where it is easier to maintain COVID safe practices.

She said the council had considered the difficulties of inviting more than a million people into the city because they’d “likely have to travel on public transport to get here”.

“It would be very difficult to stop (the spread),” she said.

Ms Moore said she has suggested creating a compilation of the previous 16 years’ (since she has been Lord Mayor) fireworks displays and bringing them to the comfort of people’s homes.

The historic vision would then be coupled with a presentation from Australian artists and performers.

“We hope that we have outdoor dining and even indoor dining, slightly more liberal than what we have now, by New Year’s Eve,” the Lord Mayor said.

“I’m opposed to doing it (fireworks) because we couldn’t handle another lockdown in Sydney.

“If we have an event (like this) it could cause a super spread since everyone has come together. We cannot manage huge crowds.”

Ms Moore argued that if there were fireworks on the bridge people would still turn up despite being told to stay home.

“I don’t want that on New Year’s Eve,” she said.

However, NSW Treasurer Dominic Perrottet challenged the Mayor. He argued while it might be a difficult task the government “does difficult well”.

“This pandemic is difficult and we’re beating the virus,” he said.

“I want to continue to work with the Lord Mayor. We believe we should have the fireworks not just for the economic benefit, but for the hope that it gives our citizens.

“Our city is open for business. And that’s not just a beacon of hope for people in our city, but globally.”

He said he accepted Ms Moore’s views and said the government faces a balancing act between acknowledging the health concerns and opening the city up.

“I can tell you the government is very, very keen to have the fireworks,” the Treasurer said.

“We want to demonstrate to the world that we are open.”

Government officials and Ms Moore met on Friday to discuss plans to revitalise Sydney over summer.

Plans include allowing for flexible outdoor dining arrangements, the establishment of outdoor venues including stages, extending retail hours and offering more flexible transport options.