A counter-terrorism source told 'The Sunday Times' that Scotland Yard are considering using temporary concrete barriers to protect areas where crowds gather in thousands on New Year's Eve.
The latest alert is in response to last week's attack in Berlin, where a hijacked lorry ploughed into crowds at a Christmas market, killing 12 people and injuring almost 50 others.
"Security will be tightened and there will be more visibility [of uniformed police] but not in a dramatic way that would not reassure people. Everyone wants people to go out and do things," the newspaper quoted a source as saying.
Other cities, including Manchester, have increased police patrols in key areas.
In Edinburgh, a record number of armed officers will be available to respond to any terrorist incident as up to 150,000 revellers take part in one of the world's biggest New Year's Eve street parties.
Police Scotland confirmed their procedures had been reviewed following the Berlin attack.
They decided earlier this year, in response to the terrorist attacks in Paris last year and Brussels in March, to increase the number of armed-response officers from 275 to about 400.
Followingadvice from MI5 and counter-terrorism police, the Corporation of London plans to install manned checkpoints, rising street bollards and crash-proof barricades.
This new plan for London would be subject to a consultation but could be fully implemented by 2022, the report said.
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