Lord Mandelson has been released on bail pending further investigation, hours after his arrest on Monday on suspicion of misconduct in public office.

The arrest came after the former Labour minister and US ambassador was accused of passing market-sensitive government information to financier and convicted sex offender Jeffrey Epstein, who died in 2019.

Lord Mandelson has not publicly commented in recent weeks, but the BBC understands his position has consistently been that he has not acted in any way criminally and that he was not motivated by financial gain.

Lord Mandelson - who served in a number of ministerial roles under Tony Blair and Gordon Brown - is announced as the UK's ambassador to the US.

A letter from Lord Mandelson to Epstein, where he calls the financier his "best pal", features in a book compiled for Epstein's 50th birthday in 2003, which is released by US lawmakers.

Lord Mandelson is sacked as US ambassador, after the government said new information about the "depth" of his relationship with Epstein had come to light.

It followed the publication of supportive emails Lord Mandelson sent to Epstein as he faced charges for sex offences in 2008.

Documents suggesting Epstein made $75,000 (£55,000) of payments to accounts connected to Lord Mandelson between 2003 and 2004 are among a tranche of files released by the US Department of Justice.

Lord Mandelson says he has no record or recollection of receiving the sums and does not know whether the documents are authentic.

Another email suggests Epstein sent £10,000 to Lord Mandelson's partner, Reinaldo Avila da Silva, in 2009 to pay for an osteopathy course. Lord Mandelson resigns his membership of the Labour Party, saying he does not want to "cause further embarrassment" over his links to Epstein.

Emails released by the US emerge suggesting Lord Mandelson forwarded market-sensitive government information to Epstein in 2009, when he was business secretary in Brown's government.

In one email he appears to gives Epstein advance notice of a €500bn bailout from the EU to save the Euro, while in another he discusses plans for a one-off tax on bankers' bonuses. The Metropolitan Police launches a criminal investigation into Lord Mandelson over allegations of misconduct in public office.

Lord Mandelson is seen being led away from his London home by police officers.

The Metropolitan Police then release a statement confirming a 72-year-old man has been arrested on suspicion of misconduct in public office and has been taken to a London police station for interview.

Lord Mandelson is released on bail, the Metropolitan Police says, hours after his arrest on suspicion of misconduct in public office.

In the very early hours of Tuesday, BBC reporters saw him returning to his London home.

"A 72-year-old man arrested on suspicion of misconduct in public office has been released on bail pending further investigation," the police statement says

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