A serving UK soldier has been arrested under the Terrorism Act after a “suspicious device” was found at a house in Salford.
The device, understood to be a nail bomb, was discovered last week.
The soldier, 19, was arrested on Monday by military police in Germany and brought back to Britain to be questioned.
The BBC understands he has been questioned about suspected links to right-wing extremism.
Greater Manchester Police found the suspected nail bomb while executing a warrant in Mellor Street, Patricroft, on Thursday, following a tip-off about images of abuse on a computer.
A 20-year-old man was arrested on suspicion of possessing abusive images following the raid and police also recovered “several items of literature which could be viewed by some as potentially inflammatory”.
These discoveries prompted the arrest of the soldier in Germany and a search of his barracks.
Both men have been released on bail.
Two soldiers walk down a residential road at night
Experts from the Royal Logistic Corps examined the suspected nail bomb
“A cordon was put in place and a number of residents were evacuated as a precautionary measure,” police said in a statement.
“Specialist officers assessed the device and were later able to confirm it was no longer a threat to the community.”
A bomb disposal unit from the Royal Logistic Corps also attended the scene.
The soldier was detained by military police on suspicion of the unlawful possession of explosives, firearms and ammunition, the Army said.