Andrew Mountbatten-Windsor has been arrested on suspicion of misconduct in public office and is in police custody, Thames Valley Police said.
Pictures circulating online appear to show unmarked police cars attending Wood Farm in Norfolk on Thursday, with plain-clothed officers gathering outside the property.
The former prince had been at the King’s Sandringham Estate celebrating his 66th birthday.
Andrew is the first senior royal in modern history to have been arrested.
Thames Valley Police confirmed in a statement that they had arrested a man in his 60’s and are carrying out searches at addresses in Berkshire and Norfolk.
Assistant Chief Constable Oliver Wright said: “Following a thorough assessment, we have now opened an investigation into this allegation of misconduct in public office.
“It is important that we protect the integrity and objectivity of our investigation as we work with our partners to investigate this alleged offence.
“We understand the significant public interest in this case, and we will provide updates at the appropriate time.”
Thames Valley Police previously said they had been reviewing allegations that Andrew had shared sensitive information with Jeffrey Epstein while serving as the UK’s trade envoy.
It came after a cache of emails released by the US Department of Justice, which appeared to show the former duke sharing reports of official visits to Hong Kong, Vietnam, and Singapore with the convicted paedophile.
Andrew has not been charged, and police have not given any further details of his arrest. It is not known on what evidence the police have based this arrest.
According to the Crown Prosecution Service’s (CPS) website, misconduct in public office carries a maximum sentence of life imprisonment.
Andrew has consistently denied any wrongdoing.
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