German police say a suspicious item found at a Christmas market in Potsdam, just outside of Berlin, contained explosives.
Both the market and the surrounding area were evacuated as special forces investigated and there were no injuries.
The suspicious object was delivered to a pharmacy on the same street as the Christmas market and it measured 40 cm by 50 cm, it has been reported.
"The suspicion of an improvised explosive device has been confirmed," police said on Twitter.
Police have now confirmed that the explosive device has now been defused and spokesman Torsten Herbst said on n-tv that it was not clear what the device was made of.
Some reports had suggested it was a cylindrical object packed with nails but this has yet to be verified.
Brandenburg Interior Minister Karl-Heinz Schroeter said: "The evaluation and analysis is just beginning now," he said. "If it was really explosive or if it was a fake or a dummy, we will only know through further investigation."
The verified police Twitter account of Brandenburg police said the IED suspicion had been confirmed.
"The USBV suspicion has been confirmed. The affected area in the city centre of Potsdam must be cleared! Please note our loudspeaker announcements," one of the tweets read.
Germany is on high alert for potential terrorist attacks after last year's deadly attack on a Christmas market in Berlin.
