It was not immediately clear what became of the device, which German media say was delivered to a pharmacy, beyond the fact that it had not exploded or hurt anybody.
The police said earlier on Twitter that "the suspicion of an improvised explosive device has been confirmed".
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Both the market and the surrounding area have been evacuated as special forces investigate.
Police described the contents of the package as a "cylindrical object with cables, batteries and nails", but no triggering device. The incident left 12 people dead and dozens more injured.
Christmas markets opened across Germany on Monday at the start of the holiday season, fortified with concrete barriers and security staff to protect shoppers.
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German authorities were already on high alert for an attack on one of the country's famous Christmas markets after 12 people were killed in Berlin a year ago.
The package was dropped off by a messenger service in the afternoon at a chemist in the Brandenburg state capital just as crowds were gathering at the nearby Christmas market. It lies about 40 kilometers southwest of Berlin.
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