The police swoop in a London street comes as Scotland Yard examines the item found on a train at North Greenwich station.
Police have tasered a 19-year-old in a London street and arrested him a day after a suspicious device was found on a Tube train.
The teen, held under the Terrorism Act, was seized in an armed operation in north London.
British Transport Police were called to North Greenwich Underground Station in London on Thursday morning and a controlled explosion was carried out shortly afterwards.
The station, a main hub for London's O2 complex, was evacuated and remained closed for several hours.
"The 19-year-old man was arrested on suspicion of the commission, preparation and instigation of terrorism acts," the police said in a statement.
"He has been taken to a London police station where he remains in custody."
Police said they are not looking for any other suspects in the case at the moment.
Scotland Yard has released no details on the item, saying only it is being forensically examined.
"Officers are keeping an open mind regarding any possible motive," the statement said.
More officers, including armed police, have been deployed in and around transport hubs to reassure the public.
London Mayor Sadiq Khan said the situation was dealt with "swiftly and safely, an no injuries resulted".
"Keeping Londoners safe is my highest priority," he added.
"I am urging all Londoners to check with TfL before they travel and to remain calm and vigilant at all times."
The terror threat level in the UK is currently severe - meaning an attack is "highly likely".
:: Police urged anyone who saw anything suspicious on the train, or anywhere else, to call the anti-terrorist Hotline on 0800 789 321.
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