Giant outdoor screens will be erected, showing highlights from the opening ceremony, with a four-metre-high ice sculpture of the five Olympic Rings taking centre stage.
Members of the public will be able to take part in a series of virtual winter sports games, including downhill slalom skiing, snowboarding and bobsleighing courtesy of Sega.
The best players will be picked to compete against each other in front of thousands on one of the giant screens.
"Next weekend, Trafalgar Square will be bursting with excitement as we watch the world's elite winter sports athletes proudly represent their countries ahead of the biggest physical and mental challenge of their lives. While we can not bring the snowy slopes of Whistler to London, we are offering a fantastic day of interactive fun and competition to the heart of the host city of the next Summer Games," said London Mayor Boris Johnson.
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