Police were called to a house in Capricorn Road, Blackley, on Friday night following reports of “suspicion circumstances”.
Officers removed a number of items from the property following “concerns about how a business is being run”, a police spokeswoman told The Independent.
A funeral service business is registered to the property online.
Neighbours in the cul-de-sac reported seeing police removing at least two coffins from the semi-detached house.
In video footage filmed from a property on the opposite side of the street, officers can be seen wheeling out a brown coffin on a trolley before placing it in the back of a private ambulance.
A black hearse can also be seen sitting on the driveway of the property partially covered by tarpaulin.
A police car remained stationed outside the house on Sunday morning after guarding the property overnight, neighbours told the Manchester Evening News.
A spokesperson for Greater Manchester Police told The Independent: “Police were called at around 8.45pm on Friday, 24 January, to reports of suspicious circumstances at an address on Capricorn Road, north Manchester.
“Officers attended the scene and a man in his 50s was arrested on suspicion of fraud.
“He has since been bailed pending further investigation.
“Officers have removed a number of items from the property following concerns about how a business is being run and have taken the necessary steps to ensure that the right measures are in place.”
Anyone with any information is asked to call police on 0161 856 1146 quoting incident number 2902 of 24/01/2020.
Reports can be made anonymously to Crimestoppers on 0800 555 111.