The Country Fire Authority has declared a total fire ban for Melbourne, the state`s Wimmera, West & South Gippsland, Central, North Central and South West districts.
Bureau of Meteorology senior forecaster Richard Carlyon said temperatures were expected to hover around the late 30s throughout most of the state, although Horsham will be facing a 41-degree day.
But Mr Carlyon said a cool change should pass through the city around 8pm, providing revellers awaiting the fireworks some respite from the heat.
The new year is set to get off to a cooler start, with the mercury forecast to reach 28 degrees.
The city`s multi-million dollar fireworks display will still go ahead, and more than half a million people are expected to flock to the city for the celebrations.
More than 10 tonnes of fireworks will be set off from 17 locations throughout the city, with Kings Domain, Treasury Gardens, Flagstaff Gardens or Docklands being the best spots to watch the colourful display.
Public transport will be free on New Year`s Eve and Flinders Street and Southern Cross stations will remain open all night. The other city loop stations will be closed from 11.45pm.
New Year`s fireworks have been cancelled in the fire-hit Great Ocean Road region.
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