Namibian police intercepted a suspicious object with a detonator and a running clock in the luggage on an Air Berlin plane from Windhoek to Munich.
Authorities in Namibia were investigating whether the device found during the loading of the Airbus jet on Wednesday could have exploded.
"A subsequent X-ray (of the luggage) revealed batteries that were attached with wires to a detonator and a ticking clock," the German authorities said in a statement.
"Only the ongoing forensic investigation will show whether this was a live explosive."
The suspicious package was discovered hours after German authorities stepped up security measures after saying they had received intelligence pointing to a planned attack in the country towards the end of this month.
Thomas De Maiziere, the interior minister, said that a foreign tip-off had indicated an al-Qaeda cell was planning an attack on Germany. He said the country was being actively targeted by extremist groups as a result of its involvement in Afghanistan.
"There is reason for concern, but no reason for hysteria," he said at a hastily convened press conference.
Karl Peter Bruch, the interior minister of the south-western state of Rhineland-Palatinate, on Wednesday said there were "concrete indications" of attacks being planned in major cities including Berlin, Hamburg and Munich.
And on Thursday Konrad Freiberg, the head of Germany's police union, warned the nation of "security deficits", saying that Germany was not prepared for a terrorist attack.
"We have missed a few steps along the way and there are security deficits that we have drawn attention to," he told the Hamburger Abendblatt daily.
On Thursday, Sabine Teller, a spokesman for Air Berlin, said no explosives had been found in the bag. She said it was unclear which plane the suitcase had been intended for, and that all of the Air Berlin luggage had been rechecked after passengers identified their bags.
After a lengthy delay the plane was able to leave and arrived with all passengers in Munich on Thursday morning.
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