A 27-year-old German man has been arrested on suspicion of "planning a terrorist act," police and a state official said Wednesday.
The man is suspected of planning an attack with an Islamist motive in Eisenhuettenstadt, a town near the Polish border, Brandenburg's state premier Dietmar Woitke said.
Security sources told dpa the man had been planning an explosives attack at a local festival in the town, which is scheduled to take place on August 26-28.
A police spokesman in Frankfurt an der Oder, a city of just north of Eisenhuettenstadt, said explosives had been found in the man's home after a search with sniffer dogs.
Shortly afterwards, Brandenburg police put out a statement saying authorities had found a "small number of pyrotechnic articles" during the search, but that no evidence of a terrorist plot had been found.
The suspect is considered "psychologically unstable," an anonymous source told dpa citing police investigators.
Germany has been on high alert since two terrorist attacks carried out in the southern state of Bavaria last month were claimed by the Islamic State terrorist group.