Mandelson's lawyers say he was arrested over 'baseless' claim he was a flight risk
The Metropolitan Police has said it will not comment.
There is absolutely no truth whatsoever in any such suggestion.
The arrest on Monday followed search warrants at two addresses in Wiltshire and Camden.
Consultations between the police and the Crown Prosecution Service are ongoing.
The Met said Lord Mandelson has been bailed to the end of May.
The former Labour spin doctor has been a high profile figure in British politics for decades.
The allegations against Lord Mandelson surfaced after the US Department of Justice released a tranche of documents last month, including emails between him and Epstein
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