Army Technical Officers have carried out a controlled explosion on the hijacked vehicle in the Circular Road area of Derry.
The van was hijacked by three masked men this morning before it was abandoned.
Police say a number of homes remain evacuated and the cordons are still in place as investigations continue.
However, the PSNI continue to deal with a second security alert, after a Royal Mail vehicle was hijacked by 4 masked men this afternoon.
One of them is reported to have been carrying a gun.
The two occupants of the van were ordered to drive it to the Lonemoor Road and leave it there.
Local Councillor Kevin Campbell has been condemning the incidents:
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