The man was nabbed by officers from Scotland Yard's Counter Terrorism Command, assisted by armed colleagues in a street in north London.
Officers discharged a Taser during the arrest but no firearms were used.
"The 19-year-old man was arrested on suspicion of the commission, preparation and instigation of terrorism acts, under Section 41 of the Terrorism Act 2000. He has been taken to a London police station where he remains in custody," a Metropolitan Police statement said.
The station was evacuated while specialist officers from the Metropolitan (MeT) Police Service and BTP attended and made the item safe by carrying out a controlled explosion.
"The item is currently being forensically examined and we await the results of that examination. The Met and BTP have been working tirelessly since the item was found to follow up all potential leads. Officers are keeping an open mind regarding any possible motive. They are not looking for anyone else in relation to this investigation at this stage," the Met statement said.
Media reports indicated that the suspicious item was an abandoned bag full or wires.
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