In this paper, a liquid crystal axicon based holographic near-eye display system with large viewing area is proposed. The viewing area of the system is extended by implementing the liquid crystal axicon. The error diffusion algorithm is used to calculate the computer-generated hologram (CGH). When incident on the liquid crystal axicon placed at the back focal plane of Fourier lens, the reconstruction light modulated by the CGH is deflected into two directions resulting in a viewing area extension. Meanwhile, to illustrate the potential of the proposed system, two-dimensional viewing area extension is demonstrated. It combines the frequency spectrum shift with the proposed system and achieves a double expansion of the horizontal viewing area and three-times expansion of the vertical viewing area. Feasibility of the proposed system is verified by optical experiments. The proposed system has potential applications in holographic augmented reality (AR) display.