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They say propane tanks, fireworks, petrol, and a clock device were removed from a parked sports utility vehicle.

Part of the district - where many theatres are sited - was sealed off.
Both US President Barack Obama and New York City Mayor Michael Bloomberg praised the quick response by the New York Police Department.

"We are very lucky," Mr Bloomberg told reporters. "Thanks to alert New Yorkers and professional police officers, we avoided what could have been a very deadly event."

He said the bomb "looked amateurish" but could have exploded, adding that the incident was a "reminder of the dangers that we face".


Correspondents say the New York City Police Department is on constant alert after a series of alleged terror plots in the wake of the 9/11 attacks.

"The NYPD bomb squad has rendered safe an improvised car bomb," said New York Police Commissioner Ray Kelly.

The alert was triggered when a street vendor saw smoke coming from a Nissan Pathfinder parked on 45th Street and Seventh Avenue at about 1830 (2230 GMT) on Saturday.


The vehicle had its engine running and hazard lights flashing, officials said.
Police shut down several blocks of Times Square, as well as subway lines, while a robotic arm broke windows of the vehicle.

"There were explosive elements, including powder, gasoline, propane and some kind of electrical wires attached to a clock," police spokesman Paul Browne told reporters early on Sunday.
"No motive has been identified," he added.

Security footage is being reviewed after reports that a person was seen running away from the vehicle.
The car's plates do not match the registration, the spokesman said.


Jerry Brown, one of the tourists evacuated from the nearby Marriot Marquis hotel, told the BBC: "Guests are sitting on the street and there is considerable chaos... There is talk about moving us to another hotel but I am not sure how this is going to happen."

Most Broadway shows went ahead despite the alert.
FBI agents have joined NYPD investigators at the scene.
The White House said President Obama was being kept up to date on the investigation.

The most recent terror alert in New York City involved a plot to set off suicide bombs in the subway system.
Earlier this year an Afghan immigrant, Najibullah Zazi, and an associate, Zarein Ahmedzay, both pleaded guilty in connection with the attempt.

Last year four New Yorkers went on trial accused of plotting to bomb synagogues in the city and fire missiles at military aircraft.