We consider the nonlinear propagation of electrostatic wave packets in an ultra-relativistic (UR) degenerate dense electron-ion plasma, whose dynamics is governed by the nonlocal two-dimensional nonlinear Schrödinger-like equations. The coupled set of equations are then used to study the modulational instability (MI) of a uniform wave train to an infinitesimal perturbation of multi-dimensional form. The condition for the MI is obtained, and it is shown that the nondimensional parameter, β ∝ λ C n 1/3 0 (where λ C is the reduced Compton wavelength and n 0 is the particle number density), associated with the UR pressure of degenerate electrons, shifts the stable (unstable) regions at n 0 ∼ 10 30 cm −3 to unstable (stable) ones at higher densities, i.e. n 0 7 × 10 33 . It is also found that the higher the values of n 0 , the lower is the growth rate of MI with cut-offs at lower wave numbers of modulation. Furthermore, the dynamical evolution of the wave packets is studied numerically. We show that either they disperse away or they blowup in a finite time, when the wave action is below or above the threshold. The results could be useful for understanding the properties of modulated wave packets and their multi-dimensional evolution in UR degenerate dense plasmas, such as those in the interior of white dwarfs and/or pre-Supernova stars.