Britney Spears' performance raised eyebrows last year

They are televised live on the cable and satellite music video channel in the US and last year drew an audience of 50 million.

Van Toffler, president of MTV and MTV2, announced the decision in a prepared statement.

"Our plan is to throw the last big bash of the summer with the Video Music Awards occurring right here in our own backyard," Mr Toffler said.

Memorials

New York Mayor Michael Bloomberg, successor to Rudolph Giuliani, welcomed the news.

"As the music capital of the world and MTV's homebase, there is no better place on earth to host MTV's annual music awards extravaganza," said Mr Bloomberg.

Mayor Michael Bloomberg welcomed the announcement

Organisers of New York's 2002 fashion week also said this week they were considering moving their event to avoid commemorations for the terror attacks on the World Trade Center.

A decision on a new date is expected by the end of the week following discussions with designers and producers.

The six-month anniversary of the attacks was marked with memorial ceremonies for the victims held around the US.

New York remembered the estimated 3,000 people who lost their lives in the plane crashes and collapse of the twin towers with its Tribute of Light.

The tribute took the form of two powerful vertical beams switched on at the World Trade Center site.

The MTV Music Video awards honour the best music videos of the year.

Last year, British DJ Fatboy Slim was the night's biggest winner when his video Weapon of Choice, directed by Spike Jonze and starring Christopher Walken, took six prizes.