Germany hunts suspects linked to New Year 'IS terror plot'

German police were on high alert Friday as they hunted for up to seven people suspected of plotting a New Year's Eve suicide attack in Munich in the name of the Islamic State group.

Police said an investigation was under way, with 550 officers deployed to hunt down the suspects and secure the city, warning that the threat remained "high". 

"We still have many colleagues deployed. There is, as before, a high threat of terror," a police spokesman told AFP.

German officials said they were tipped off by a "friendly intelligence service" about the plan, which was to have been executed at around midnight, said Joachim Herrmann, interior minister for the southern state of Bavaria.

Just 90 minutes before the southern German city was to ring in the New Year, police ordered the evacuation of Munich's main rail station and another station in the west of the city after being tipped off about a possible "terror attack". 

Police chief Hubertus Andrae said "five to seven" suspects were believed to be involved.

Following the alert, which was issued at 10:30 pm (2130 GMT), rail services at both stations were suspended and police urged the public to avoid large gatherings.

By Friday morning, the stations were reopened, Munich police said, but warned the public to remain vigilant. 

European capitals have been on high alert over the holidays, with both Brussels and Paris scrapping the traditional fireworks show for their respective New Year celebrations.

Belgian police were also holding five people over an alleged New Year plot in Brussels.