Lord Mandelson's lawyers have said police officers arrested the former ambassador to the US at his London home on Monday afternoon because they worried he was a flight risk.
The peer's lawyers have told the BBC there is "absolutely no truth" in the suggestion that Lord Mandelson was planning to leave the UK and move abroad.
The Metropolitan Police has said it will not comment.
The former Labour minister was arrested on suspicion of misconduct in public office on Monday and later released on bail, pending further investigation.
A spokesperson for Mishcon De Reya, Lord Mandelson's lawyers, said: "Peter Mandelson was arrested yesterday despite an agreement with the police that he would attend an interview next month on a voluntary basis.
