An improvised explosive device discovered in Templeton Street on Saturday prompted a call to the specialist Bomb Response Unit from Melbourne to diffuse the device.

The item was found in Templeton Street just after 2:15pm, the Bomb Response Unit attended, and nearby areas were evacuated as a precaution.

The streets were closed off from approximately 2:30pm, with the situation fully resolved by 7:30pm on Saturday afternoon.

Wangaratta Acting Sergeant Steve Burke said the explosive device was diffused by the Bomb Response Unit.

"They had concerns about the device and took every necessary precaution," he said.

"There is an active investigation ongoing."

Wangaratta detectives will will lead the investigation.

Anyone with information or dashcam/CCTV footage is urged to contact Wangaratta CIU through the Wangaratta Police Station at (03) 5723 0888 or contact Crime Stoppers on 1800 333 000 or submit a confidential report online at www.crimestoppersvic.com.au.