Two men have been arrested over an attempted ATM break-in in Sydney's CBD, after a suspicious item was found on a footpath near the Queen Victoria Building, forcing the evacuation of shoppers and nearby buildings.

The men were arrested at the scene and have been taken to Sydney City Police Station.

The item was declared safe and seized for further examination by police.

Police will allege the item had been used in an unsuccessful attempt to break into an ATM on Market Street.

All roads have now been reopened, after police had closed Market Street between Kent and George Streets.