Kuttner, 70, apparently did not know he was going to be taken into custody when he arrived, by appointment, with his solicitor at a police station in London at around 11am to answer questions regarding the scandal.
As per normal practice, Scotland Yard has not released the name of the arrested person, but according to Sky News and The Guardian, he is Kuttner, who was a leading figure in the News of the World until 2009.
He was bailed this evening until later this month.
Kuttner was arrested on suspicion of conspiring to intercept communications, contrary to Section 1 (1) Criminal Law Act 1977, and on suspicion of corruption allegations contrary to Section 1 of the Prevention of Corruption Act 1906.
Rebekah Brooks, ex-editor of the News of the World, was also arrested under the same charges.
Kuttner resigned as the managing editor in 2009, after playing a leading role in the tabloid's ''Sarah's Law'' campaign, which sought to change the law, so parents can be told when registered sex offenders move into their area.
He was previously news editor at the London Evening Standard.