The singer, who was found to be in a 'confused state' and wondering around near Hampstead Heath, North London, was detained for five hours by cops for questioning on September 19 as they suspected him of having taken drugs. "It's not clear how long he'd been there as the loos are locked for the night," the Daily Star quoted a source as saying.
Cops searched the singer and found two substances on him, crack cocaine and cannabis. Though he was not charged, Michael, 45, agreed to take an official caution, which will put the whole incident on file.
"He was found with crack and cannabis," a pal of the star said.
"It's sad to see him in such a state he's been held for drugs before, but I've never heard of him using crack.
"That's not good. He seems to have a self-destruct button which he can't help pressing," the pal added.
The police issued a statement regarding the arrest, and confirmed that there were no charges.
"I can confirm that a 45-year-old man was arrested in the Hampstead Heath area on September 19 on suspicion of possession of drugs," a Met Police spokesman said.
"He was taken to a North London police station where he accepted an official caution and was released with no further action. The drugs were Class A and Class C," the spokesman added.
A spokesman for the singer was not available for comment last night.