Justin Timberlake is due to host the event

The drivers were protesting against a decision to hire non-professional drivers to transport artists and stars.

The Greater Copenhagen Taxi Driver Association said 1,000 taxis would stage road blockades.

Justin Timberlake will host the show, which features performances by Muse, Nelly Furtado, Keane and P Diddy.

The taxi drivers' union cancelled its threat after a meeting with Copenhagen transport officials on Tuesday.

They have agreed to let 150 limousine drivers chauffeur some of the guests.

City officials have promised to hold talks over the issues raised by the dispute after the awards ceremony.

'Bread and butter'

The Red Hot Chili Peppers are leading the nominations with nods in four categories, including best album, while Christina Aguilera, Madonna, Shakira and Furtado, Kanye West and Muse are up for three awards each.

An audience of about 3,000 people are expected to watch the event at the Bella Centre Conventional Hall, while an additional 10,000 are expected at the Radhuspladsen Town Square.

The Greater Copenhagen Taxi Driver Association said it would block roads leading to the two venues unless the city gave its drivers the sole right to handle transportation for the event.

City officials, anticipating a high demand for limousines, decided to let MTV organisers use other drivers.

"They want to take our bread and butter," union spokesman Joergen Egemark had said.

MTV's Europe Music Award winners are selected by fans across Europe. The event is held in a different city each year.