Another 30 people have been injured in the incident, which took place on the corner of the popular Bourbon Street, in the French Quarter of the city.
It happened at around 3am local time.
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The city’s emergency preparedness campaign, NOLA, managed by New Orleans Homeland Security & Emergency Preparedness, has said there has been “mass casualty incident”.
“The 8th District is currently working a mass casualty incident involving a vehicle that drove into a large crowd on Canal and Bourbon Street,” NOLA said.
“Public safety partners are responding on scene.”
Earlier they warned people to “get yourself away from the area”.
Police said on Tuesday they expected the city to be busy as locals and visitors rang in the new year.
The city was just hours from the annual Allstate Sugar Bowl college American football game, which also attracts thousands of people.
Police had said to help keep the peace, it would be staffed at 100% and would draft in another 300 officers.
Bourbon Street is a popular tourist area in the city, famous for its many bars and clubs.
