The British police bomb squad has confirmed that a suspicious device found in the boot of a car parked in a central London street was a bomb.

The officers were called to examine a car parked in The Haymarket, a busy street in the heart of central London`s theatre district early on Friday morning, Reuters reported.

"They discovered what appeared to be a potentially viable explosive device. This was made safe," London police said in a statement, adding that counter-terrorism officers were investigating the incident. A police spokesman confirmed the device was a bomb.

The device was found in the week that a new prime minister, Gordon Brown, took office in Britain.

Police responded after a member of the public reported a suspicious vehicle shortly before 2 a.m. (0100 GMT).

The police said the street was cordoned off while they investigated and was likely to remain closed for the foreseeable future.

The nearby Piccadilly Circus underground train station was open, but exit restrictions were in place, the police said.

Fifty-two commuters were killed by bombs on London`s transport system on July 7, 2005.