The 44-year-old was detained in the Rusholme area, two miles south of Manchester city centre, on Friday evening, police said.
Twenty-two people were killed and dozens more injured when suicide bomber Salman Abedi detonated a home-made device as fans left a concert by US star Ariana Grande at Manchester Arena on Monday night.
Arrests have been made throughout the week, and detectives investigating the bombing say they have made significant progress but the threat level is to remain critical over the weekend.
A number of sporting events are taking place over the weekend, including the Scottish Cup and FA Cup finals, with enhanced security set to be in place at venues and transport hubs, including armed police.
Meanwhile, Grande has vowed to return to Manchester to hold a benefit concert to raise funds for the victims of the terror attack, the youngest of which was eight years old..
The US pop star called for people to come together in a lengthy statement on Twitter.
“My heart, prayers and deepest condolences are with the victims of the Manchester attack and their loved ones.
“I don’t want to go the rest of the year without being able to see and hold and uplift my fans, the same way they continue to uplift me.
“I’ll be returning to the incredibly brave city of Manchester to spend time with my fans and to have a benefit concert in honour of and to raise money for the victims and their families.
“I want to thank my fellow musicians and friends for reaching out to be a part of our expression of love for Manchester.
“I will have details to share with you as soon as everything is confirmed.
“Our response to this violence must be to come closer together, to help each other, to love more, to sing louder and to live more kindly and generously than we did before.
“We will not quit or operate in fear. We won’t let this divide us. We won’t let hate win.”
She said her Dangerous Woman Tour, which has been suspended until June 7, was “intended to be a safe space for my fans”.
“A place for them to escape, to celebrate, to heal, to feel safe and to be themselves.
“To meet their friends they’ve made online. To express themselves.
“This will not change that,” she adds.
“We will continue in honour of the ones we lost, their loved ones, my fans and all affected by this tragedy.”
Two of the victims, Courtney Boyle and stepfather Philip Tron, have been remembered at a moving service at the Angel of the North on Friday.
Hundreds gathered at the landmark in their home town of Gateshead for a balloon release.
Miss Boyle, a 19-year-old student at Leeds Beckett University, and Mr Tron, 32, were picking up her sister from the concert when they were killed.
The Mayor of Gateshead Pauline Dillon read out a tribute on behalf of Courtney’s mother Deborah, which said: “Courtney and Phil both went into the Arena to collect Nicole, laughing and both were so happy.
“Courtney and Phil brought so much happiness into our lives, they were my rock and if you were ever feeling down they would bring you back up with their infectious smile.
“They both loved life and are now our angels flying high together into the sky.”
Families with toddlers, teenagers and older grieving friends of the victims were at the statue for the service, which included prayers and the songs Don’t Look Back In Anger by Oasis and Bed Of Roses by Bon Jovi.
Many wept when the warm early summer evening sky was filled with balloons when they were released.