New York Police Department spokesman Paul Browne said that smoke was coming out from a car which was left behind in Times Square.
Police evacuated the building and a bomb squad was rushed to the site. Robot is being used to inspect the package.
Browne said that some reports claim that a man was seen running from the car.
"We're just trying to determine if it was anything other than a car fire," said Browne. "We don't know yet if it's anything more than that."
According to a fire fighter who had arrived early on the scene said that the vehicle was a dark-colored SUV and was parked at at the corner of 45th Street and Seventh Avenue.
"The SUV was smoking. There was a flash and we put two and two together and an evacuation was ordered," he said, adding that the bomb squad remained in the scene till 9 pm, along with firefighter in a bomb suit.
He said that robot was being used to investigate the suspicious SUV.