Arenas will be allowed to bring spectators back beginning Feb. 23 with limited capacity and testing in place, Gov. Andrew Cuomo on Wednesday said.
The first event granted approval is a Feb. 23 game between the Brooklyn Nets and Sacramento Kings at the Barclays Center.
The New York Knicks in a statement said the team plans to hold a game with 2,000 fans in attendance on Feb. 23 against the Golden State Warriors.
And the Yankees in a statement left the door open to a potential season that includes some spectators in the stadium.
Capacity will be limited to 10% with a capacity of more than 10,000 fans. Fans will be required to test negative for COVID-19 within 72 hours of the event. Face coverings, social distancing, and assigned seats will also be mandatory.
Events must receive approval from the state Department of Health.
The announcement from the governor follows an analysis by the mobility data firm Camber Systems. The firm found a pair of Buffalo Bills playoff games with fans in attendance did not lead to a rise in COVID-19 cases in Erie County.
Cuomo this year wants to expand the ability to hold in-person events around the state as the vaccine continues to be rolled out. So far, more than 2 million doses of the vaccine have been distribued in the state.