An emergency situation at Arundel is being scaled back after police bomb squad members manually deactivated a home made explosive.

A truck driver was emptying a load from his vehicle, which had not been in his possession the past few days, when he found the suspicious device about 10am today.

He alerted authorities, sparking a police response under the Public Safety Preservation Act.

Several businesses were evacuated and a large area was cordoned off.

The device was not detonated, but police confirmed if it had gone off it would have caused significant damage.

media_camera A police bomb squad member at the Arundel business. Photo: Nine Gold Coast/Twitter

It is believed a gun and ammunition were also found near the explosive device.

Senior Sergeant Greg Brake said the device was successfully deactivated and the emergency situation was revoked.

media_camera The device at the centre of the emergency at Arundel today. Photo: Jessica Elder

The truck the device was in had been stolen some weeks ago and was only returned to the cabinet maker business on Wednesday.

It is not known who put the device in the truck or why. Investigations are continuing.