In what is being billed as a "spectacular live stage show", Take That will perform an array of hits from their early days through to their most recent album.
"This event solves one of the biggest conundrums of the year – what to do on New Year’s Eve," said ITV entertainment's controller of music and events, Guy Freeman. "Take That will be live in your living room for the ultimate party. For us to persuade Mark, Howard, Gary and Jason to welcome in 2008 for our viewers is just fantastic and we look forward to presenting an unforgettable night with them and their special guests Sugababes."
David Campbell, chief executive of O2 Arena owners AEG Europe, said that the show would represent "the start of a new tradition for London".
"We’re thrilled to be hosting the ultimate New Year’s Eve party," he said. "The O2 has had a mind blowing opening season, and what better way to celebrate this than a world-class evening with Take That and Sugababes."
Whizz Kid Entertainment will produce the live broadcast, titled Countdown to Midnight with Take That and Guests Live at the O2, for ITV. Whizz Kid chief executive Malcolm Gerrie said: "This is year one of a really exciting partnership for us. We’re looking forward to welcoming in the New Year at one of the world’s most successful venues with one of the world’s most successful bands. If you don’t know what to do this New Year’s Eve, Countdown to Midnight provides you with a ready made party."