IS-affiliated suicide bombers wanting to commit an act of terror are being reported as the reason Munich police asked residents to stay away from crowded areas and train stations.
Police took to social media earlier on New Year's Eve (local time), to warn people of "serious information" linked to "imminent" attacks.
Now, Bavaria's Interior Minister, Joachim Herrmann, has told media in a press conference, police had received information the jihadist group was planning a massacre with five to seven bombers.
As a precautionary tactic, Munich police evacuated two major train stations and suspended trains coming in and out of their terminals.
According to Sky News, the closure caused havoc as partygoers tried to get home via public transport.
A German journalist, Torben Ostermann, told Sky News despite the terror warnings, it hadn't caused any panic amongst public out celebrating the New Year.
"There is nobody in the main station at the moment, but the atmosphere in Munich is like a normal New Year. It's a bit weird though that we have a terrorist warning and people are firing off their fireworks."
According to Munich newspaper TZ, there were concerns terrorists could have attacked a number of locations across the city.
A police spokesman told the paper police were trying to "minimise the risk as much as possible."