More than 200 people have been arrested for drug offences at a New Year's Day dance festival in Sydney in what police described as an "extremely concerning" jump on previous years to reach a record high.

Police arrested 214 people who were allegedly in possession of illicit drugs, including amphetamines, cannabis, cocaine, ecstasy, LSD and ice, at the Field Day festival at The Domain.

Over 200 people were arrested at the Field Day festival in Sydney. Credit:Sahlan Hayes

Among those arrested were two women, aged 20 and 21, who were found allegedly carrying 125 ecstasy tablets between them. A 19-year-old man was also allegedly found with 40 ecstasy tablets.

All three were charged with supplying prohibited drugs and were granted conditional police bail to appear in court later this month.