Lord Peter Mandelson has been arrested on suspicion of misconduct in a public office, the Metropolitan Police has said.
The former US ambassador, who was sacked in September 2025, is alleged to have shared confidential government information with paedophile Jeffrey Epstein when he was business secretary.
His arrest follows search warrants carried out at two properties in Wiltshire and Camden, police said.
A Metropolitan Police spokesperson said: “Officers have arrested a 72-year-old man on suspicion of misconduct in public office.
“He was arrested at an address in Camden on Monday, February 23 and has been taken to a London police station for interview.”
The announcement came as government ministers gave an update on the release of swathes of files related to the appointment of Lord Mandelson.
The ex-Labour peer stepped down from the House of Lords earlier this month after emails released by the US Department of Justice appeared to show him sharing sensitive information with Epstein.
Sir Keir Starmer has faced growing scrutiny over his decision to appoint Lord Mandelson as US ambassador including a backlash from his own back benches.
Just days ago an advisory firm co-founded by Lord Mandelson collapsed into administration amidst the fallout from the scandal surrounding his historical links to the paedophile financier.