A bomb disposal team was deployed to a property being searched in Wigan following an arrest linked to the Manchester attack.
Police are continuing to guard the terraced house in Springfield Street, which was evacuated on Thursday evening after the discovery of "potentially suspicious items".
Greater Manchester Police (GMP) said officers had been at the address since Wednesday evening, following the arrest of a man said by witnesses to be carrying a suspicious package.
A bomb disposal unit van arrived in Wigan Lane, near to the junction of Springfield Street, at about 7.15pm.
It drove off shortly after 9.05pm and about five minutes later residents in Springfield Street, Bellingham Avenue and Haigh Avenue were told they were now free to return to their homes.
A police cordon, which stretched 100 metres from Springfield Street to the Bellingham Hotel, near to Wigan Infirmary, is expected to be lifted shortly.
Tom Piper, who lives on Springfield Street, told the Press Association: "The police apparently turned up at 1.30am in the morning with guns and stormed the place. But I never heard it.
"Then they've been there all day, mainly just one or two police sat outside. Then about four or five-ish it looked like forensic people were there and then all of a sudden, about half-six, we all got told to evacuate."
Another witness said they had seen a bomb disposal squad unloading what appeared to be a specialist remote device to assist their search.
Jogging pants, T-shirts and underwear were seen hanging on a clothes washing line in the front yard of the address being guarded.
A GMP spokesman said: "We made an arrest in Wigan yesterday in connection with the investigation into the incident at Manchester Arena.
"Following this arrest, a house in Wigan was raided this morning and is currently being searched.
"Potentially suspicious items were found at the address and a large cordon has been put in place as EOD (explosive ordnance disposal) make an assessment.
"We have a number of officers on the ground and are evacuating people as a matter of precaution as public safety is paramount to our investigation.
"We are working with the local authority to accommodate those who have been evacuated."
Police also set up a roadblock near the Cherry Gardens pub further back on Wigan Lane, with those wishing to access Wigan Infirmary urged to use the entrance near to the Cherry Garden roundabout.
A crowd of about 100 people were at the Bellingham Hotel side of the cordon waiting to be allowed to return to their homes.
The public were warned to stay away from the area, while Wigan Infirmary issued a plea for people to try to avoid its A&E department while the incident was ongoing.
The cordon in Wigan Lane was lifted shortly after residents were told they could return to their homes.