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Norwegian police arrest 17-year-old over ‘bomb-like device’ detonated in Oslo

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A suspect is in custody after a 'bomb-like device' was found in central Oslo. (AAP)

A suspect is in custody after a 'bomb-like device' was found in central Oslo. (AAP) 

Norway's security service says a 17-year-old has been arrested in connection with an explosive device found near a busy subway station in Oslo and defused before it detonated.

Signe Aaling, chief prosecutor with the PST security service, said on Sunday that the youth was detained on suspicion of handling explosives.

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Security service head Benedicte Bjornland said it's unclear if the teen had plans to carry out an attack with the homemade device.

The youth was not identified, but Mr Bjornland said intelligence agencies were aware of him.

Mr Bjornland said he is an asylum-seeker from Russia who arrived in Norway in 2010.

Norway intelligence agency said the terror threat against Norway has been increased for "a two-month period".

Oslo's Groenland area, a multi-ethnic neighbourhood that is home to popular bars and restaurants as well as several mosques, is also where the city's main police station is located, less than a kilometre away from where the device was found.

In neighbouring Sweden, a truck on Friday ploughed into crowds in Stockholm, killing four people and wounding 15 in what police said was an apparent terror attack.

Yesterday Norway decided to tighten border regulation with Sweden following the suspected terror attack in Stockholm, Norway news site The Local reports.

READ MORE: Police identify suspect in deadly beer truck rampage

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