The Munich Oktoberfest grounds will remain temporarily closed on Wednesday, German police said, hours after an explosion rocked a building elsewhere in the southern city.

The organisers of the beer festival said on their website that a "bomb threat" had been received.

Police said explosive devices had been found in the residential building in northern Munich and that they were investigating any possible link to the Oktoberfest, held annually near the centre of the Bavarian capital on the Theresienwiese grounds.

At least one person died during the explosion early on Wednesday, which Munich police said was part of a domestic dispute.

The Oktoberfest said on its website: "Due to a bomb threat in connection with the explosion in northern Munich, Theresienwiese will remain closed until 5.00pm for the time being."

This year’s Oktoberfest began on September 20 and ends on October 5. The world’s largest beer festival usually attracts up to six million visitors. (AFP)