GERMAN police are on high alert after a bomb was discovered at a Christmas Market in Potsdam, near Berlin.
Officers confirmed the bustling Potsdam market, 18 miles from Berlin, was evacuated following concerns over a "suspicious object".
Officials later confirmed the package was an improvised explosive device before further investigations found the package was packed with nails.
A convoy of special forces made their way to the scene on Brandenburger Strasse, along with a bomb disposal unit specialised in dealing with homemade devices.
The weapon has since been disarmed by officials, with people on the scene reporting a loud bang as it was obliterated by a water cutter – however officers are hunting for any other devices that may have been delivered around the area.
The object was described by the Potsdamer Neueste Nachrichten newspaper as a package measuring 40x50 cm.
It was sent to a nearby Pharmacy as a "special delivery" – but as the shop's owner opened the package he discovered "some weird wires poking through" and informed the authorities.
The Brandenburg police force tweeted: "The items turns out to be an IED.
"The affected area in the inner city of Potsdam has to be evacuated.
"Please listen to our loudspeaker announcements."
It is currently unclear if the explosive was part of a directed attack on the area – with police confirming there were no threats made before the incident.
Minister for the Interior Karl-Heinz Schroter said: "At the moment, we can say nothing to the background, the investigation is still in its infancy."
Security officials have been on high alert around the nation's world-renowned Christmas events following an attack in December last year when a truck was deliberately driven through a festive market next to the Kaiser Wilhelm Memorial Church at Breitscheidplatz in Berlin.
It comes as German officials endeavour to protect Christmas markets with a “ring of steel” amid fears they could once again be the target of terrorist attacks.
Tight security measures are designed to prevent a repeat of the devastating attack in the German capital this year.
In Bochum, western Germany, organisers decorated concrete bollards blocking out pedestrianised areas, wrapping them up as Christmas presents with bows to make them look more festive.
Meanwhile at other markets, there were security staff patrolling the market, and concrete barriers to protect shoppers from a copycat attack after the tragedy in Berlin last year.
In November six men, all of whom are originally from Syria, were arrested in Germany in connection with a suspected plot to attack a Christmas market.
And last week ISIS jihadis sent a disturbing warning that attacks could be carried out in Christmas markets and high streets over the festive period.
Mocked-up images of a menacing hooded figure lurking behind Father Christmas have been circulated on ISIS-supporting messaging groups.
One, showing London’s Regent Street in the background, comes with the ominous caption “Soon on your holidays” in English, French and German, the Epoch Times reports.
Another shows a Christmas market in Paris, with the Eiffel Tower in the distance.
The sick messages were intercepted by BlackOps Cyber, an internet intelligence agency.