Security forces in Uruguay have found a small package containing an explosive device near the Israeli embassy in the capital Montevideo, officials have said.

Police dogs detected the device in a supermarket bag during a security check, AP reported.

The area was immediately evacuated and the bomb was safely detonated.

It is not yet clear whether the embassy, which is on the ninth floor of a building, was the target.

Some reports alleged that the device was placed to test authorities' "response time".