It was a member of the Hatteras Island Rescue Squad who was fishing reported the object, the Island Free Press reported.
The National Park Service said "out of an abundance of caution", a one-mile safety perimeter was erected temporarily around the object until its nature was determined by EOD team. "They are restricting access to the sandbar at this point".
Neither the military nor the National Park Service has identified it.
The morning evacuation proceeded without incident, and Shelly Island will remain evacuated until the object can be identified. Officials have called in the U.S. Navy explosive ordnance team from Little Creek, Virginia, and are expected to arrive Friday afternoon.
Earlier on Friday, authorities evacuated the new island that recently formed near Buxton after Dare County Emergency Management was alerted of the device.
"It may not even be recognizable as far as what it used to be - [we] are just being cautious", said Barber.
Media outlets were reporting Friday that Shelly Island off the coast of Dare County was evacuated due to a possible unexploded Navy ordnance that was discovered washed ashore Friday morning.