"Nobody was hurt, no property damage occurred," Saxony State Criminal Police Office (LKA) representative said commenting on the controlled explosion adding that the explosive was more volatile than TNT, Sueddeutsche Zeitung reported.
On Saturday, police in the eastern German city of Chemnitz were investigating a "static threat", having evacuated residents of one of the city's districts. Police stormed one of the flats but the suspect, Jaber Albakr, had fled by then.
According to media reports, Albakr has links to the Daesh jihadist group, which is outlawed in Russia.
Germany remains on high terrorist alert in the wake of two lone-wolf attacks in Germany's Bavaria in July. Responsibility for both attacks was claimed by the Islamic State jihadist group, which is banned in Germany and Russia as well as in many other countries.