The event, billed as the "European Freedom Awards", will include former UKIP leader Nigel Farage, and a former Czech president, Václav Klaus. He will receive the European Freedom Award for his "advocacy and advancement of liberty, self-determination and direct democracy in Europe".
The festivities are partly financed by the Eurosceptic EU Parliament group that boasts both Sweden Democrats and UKIP as members.
Political scientist Ann-Cathrine Jungar said she thought the event was a publicity stunt.
“It’s to show they’re part of a European context,” Jungar told TT news agency.
An estimated 300-400 guests from across Europe are expected to attend the event, which the Sweden Democrats had wanted to host in the Stockholm City Hall – the same venue where the Nobel Prize dinner is held each year. But that request was turned down by the City Hall over security concerns, and will now take place at the Grand Hotel in Stockholm.
The hotel received an onslaught of negative reviews on its Facebook page after it was announced that it had accepted the booking.