ISIL flag and explosive found during police raids in Brussels

Police raids have discovered an ISIL flag, chemicals and a nail bomb at a house in Brussels hours after explosions devastated the European city.

The explosive device found at a house in the Schaerbeek district contained nails and there were also chemicals discovered nearby, the Guardian reports.

"The searches that took place in … Schaerbeek found an explosive device containing among other things nails," Belgian federal prosecutor Frederic Van Leeuw announced at a press conference.

"Investigators also discovered chemicals and a flag of the Islamic State."

It is believed Paris terror suspect Salah Abdeslam was holed up in the Schaerbeek district in the weeks following the attacks in France.

Belgium police are continuing their raids across the country.