Police in the city of Potsdam said the package did not appear to include any parts for detonation, but wires and a firecracker without a fuse were found inside the cylindrical object.
Earlier, officers said special forces were examining the object, which was described by the Potsdamer Neueste Nachrichten newspaper as a package measuring 40cm (15.75in) by 50cm that had been delivered to a pharmacy near the market.
German police evacuated a popular Christmas market in the city of Potsdam on Friday before destroying a suspicious package containing nails and an unidentified powder in a controlled explosion, officials said.
Interior Minister Karl-Heinz Schroeter said the powder would be analysed to determine if it was genuine or a dummy.
Police warn that there may be more such packages in the area.
Previous year on December 19, suspect Anis Amri of Tunisia drove a hijacked truck through crowds of people killing 11 and injuring dozens, Deutsche Welle reported.
Last December, 12 people were killed and at least 48 were wounded when a tractor-trailer rammed into a crowd at a Christmas market filled with holiday shoppers in Berlin.
The attack killed 11 at the scene; Amri also killed the driver of the stolen truck and was later shot dead in a gunfight with police in Italy.