The PSNI has confirmed a viable explosive device was found in Strabane yesterday.
A security alert was issued after police were called to the Church View area when a resident discovered a suspicious object placed on a wall close to a number of houses.
The object was later confirmed to be an improvised explosive device (IED), described as a viable mortar type device.
It was made safe and removed for further examination.
A 33-year-old man was arrested in the early hours of this morning under the terrorism legislation in connection with the discovery.
PSNI Detective Inspector Andrew Hamlin said: “It is our view that that this device was placed in order to attack police officers at the nearby police station but it had the capacity to kill or seriously injure anyone in the vicinity.
"This is not the first time a deadly device has been left in a public space recently and serves to remind us all how little the terrorists responsible care for the lives of local people."
He said police are linking the incident to the hijacking of a delivery driver's car on Friday evening.
According to police, a fake pizza order was made from a phone box.
When the driver arrived at the scene, his orange Fiat Sedici was taken by three men.
The car was later found on fire.
Police are appealing for anyone who noticed "anything out of the ordinary" in the area to contact them.
Meanwhile, SDLP West Tyrone MLA Daniel McCrossan has condemned those behind the device.
In a statement, he said: “There is no place for these criminals on the streets of our town.
"Those who planted a viable explosive device in a built up residential area were reckless with the lives of the elderly people and families who live here. They need to get off our streets and get off the back of people living here."
He added: “Thanks to the residents who discovered the device and the actions of police we aren’t dealing with a tragedy this morning."