The package was found about 2:30 p.m PT Monday afternoon in the 1300-block of Farrell Avenue in the Beach Grove area.
Delta Police spokesman Ciaran Feenan said the RCMP conducted a controlled explosion of the package, and early indications are that the contents did pose a danger.
"It was believed to be an explosive device," Feenan told CBC News.
Gerry Clark, who lives in the neighbourhood, told CBC News that he and dozens of his neighbours were told by police to leave the area mid-afternoon Monday.
"I was out working in my garden, I guess it was about 3 o'clock and a police officer approached me and said I was going to have to leave,” Clark said.
“Apparently there had been a suspicious package found down the street, or one block over and down the street, within about 100 yards."
There is no indication of any connection to Friday's incident in which a pipe bomb was found on the tracks of the SkyTrain in Surrey, B.C.