An evacuation is being carried out after a cordon was set up around the vehicle
Officers have set up a 100m cordon around the vehicle on Devell Court, not far from south Manchester's Banff Road, where police searched a house on Wednesday.
It is understood that several roads have been cleared of people, including Banff Road, Oxney Road and Rusholme Place.
The car is a white Nissan Micra and police are appealing for anyone who knows about its movements in the last few months.
Latest update: Cordon in place around the Banff Road area. Please avoid. pic.twitter.com/eqntPaji14— G M Police (@gmpolice) June 2, 2017
A Greater Manchester Police statement said "Officers are currently at the location and are assessing the car.
"There is a 100m cordon in place around the Banff Road area, as a precaution, and we are asking people to avoid the area.
"An evacuation is being carried out and we would like to thank those in the local community for their cooperation and understanding."
The property in Banff Road in the Rusholme area of the city was cordoned off on Wednesday afternoon.
It was just metres from Wilmslow Road, where Abedi was captured on CCTV wheeling a blue suitcase which has become a key focus of the police investigation.
The search came after police said they believed the bomber acted "mainly alone" in the days before the attack after a concert at the Manchester Arena, which killed 22 people.
Earlier today, Britain's Prince William made a private visit to Manchester Children's Hospital to meet victims of the Ariana Grande concert bombing.
He chatted with people who were first on the scene, as police continue to investigate the terror attack.
Owen Sanderson, a man who helped people leave a nearby train station, said meeting the Duke was overwhelming.