Bavarian police on Wednesday said there has been "no explosion" after local media reported an incident near a refugee registration center in the Bavarian town of Zirndorf. They said there is no immediate danger in the area.
A spokesperson for the interior ministry confirmed there were no casualties.
"We found a burning suitcase," the spokesperson said.
Reuters news agency reported that a suitcase filled with aerosol cans exploded near a refugee registration center, citing local media.
However, local police later clarified that the fire was not caused by an explosive device.
"There is no indication at the moment that a bomb was detonated in the suitcase," Bavarian police said in a statement.
"It is possible it was a spray can inside the suitcase that caused the explosion. No one was reported injured," police added.
German news magazine Focus claimed that people fled the scene, citing eye witnesses.
Tensions have risen in Germany in the wake of multiple attacks over the past week, including two claimed by the "Islamic State" militant group.