Circular Quay has been re-opened after an item found on a Sydney ferry was deemed not suspicious, police say.

Earlier the precinct was put in lockdown as police investigated an unattended package found on a ferry from Balmain, docked at Wharf 5.

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The bomb squad were called to the scene to investigate the suspicious package. The area was declared safe a short time later.

Circular Quay has been reopened but Wharf 5 remains closed.

Bus services, which had been diverted away from the area, have also resumed and roads have been reopened.

City Circle trains have also recommenced services to the popular Circular Quay station.

Sky News showed vision of at least two navy vessels speeding towards Circular Quay http://t.co/wXeiXxJovh pic.twitter.com/zf7zF1bvm0

— smh.com.au (@smh) January 22, 2015

Sydney’s Circular Quay in lockdown after a suspicious object discovered #quaylockdown http://t.co/CMGKas47O2 pic.twitter.com/fk699hTuXS — Yahoo7 (@Yahoo7) January 22, 2015