Updated 3:12 p.m.

All lanes of I-35 between William Cannon Drive and Slaughter Lane reopened around 2:30 p.m.; however, the Texas Department of Transportation expects delays to continue. https://twitter.com/TxDOTAustin/status/1022565354818752513

Posted 1:35 p.m.

Austin Police Department says its bomb squad is on the scene of an I-35 incident due to a suspicious package found inside of the vehicle.

The APD Bomb Squad is on the scene of this incident due to a suspicious package inside of the vehicle. No other information is available at this time. https://t.co/8AAxB41Bu1

— Austin Police Dept (@Austin_Police) July 26, 2018

All lanes of I-35 remain closed in both directions between Slaughter lane & William Cannon Drive due to the police activity.

Traffic Alert: Vehicle fire has closed NB I-35 near the William Cannon Dr exit #228. Exit for Slaughter Ln, or consider options. #my35 #atxtraffic pic.twitter.com/Bultf82xpN

— TxDOT Austin (@TxDOTAustin) July 26, 2018

Police reported a vehicle fire in the 7500 block of I-35 at around 11 a.m. Drivers in the area should expect lengthy delays and consider alternate routes. Officials are also advising drivers to avoid the area. The Texas Department of Transportation is also waiving tolls for drivers to use SH 45 SE and northbound SH 130 to SH 71 to avoid the area.

Traffic Update: NB/SB I-35 remains closed between Slaughter and Wm Cannon Dr. Tolls are now being waived for northbound motorists to use SH 45 SE and northbound SH 130 to SH 71 as alternate route. #my35 #atxtraffic

— TxDOT Austin (@TxDOTAustin) July 26, 2018

Drivers reported to FOX 7 Austin on social media that some have been sitting in traffic since around 10:15 a.m.