The arrest of Peter Mandelson was sparked after a ‘baseless’ claim he was going to fly out of the UK and live in another country, his lawyers have said.

The disgraced peer was led away by police from his Camden flat on Monday night before being bailed.

His law firm Mishcon de Reya said in a statement issued on Tuesday evening: ‘Peter Mandelson was arrested yesterday despite an agreement with the police that he would attend an interview next month on a voluntary basis.

‘The arrest was prompted by a baseless suggestion that he was planning to leave the country and take up permanent residence abroad.

‘There is absolutely no truth whatsoever in any such suggestion. We have asked the MPS for the evidence relied upon to justify the arrest. Peter Mandelson’s overriding priority is to cooperate with the police investigation, as he has done throughout this process, and to clear his name.’

He has been accused of passing sensitive information onto paedophile financier Jeffrey Epstein during his time as business secretary.

As part of the so-called Epstein files, emails from 2009 appear to show Lord Mandelson pass on an assessment by Gordon Brown’s adviser of potential policy measures including an ‘asset sales plan’.

He also appeared to discuss a tax on bankers’ bonuses and confirm an imminent bailout package for the euro the day before it was announced in 2010.

The emails appeared to be sent to Epstein after he became a convicted sex offender.

The Metropolitan Police declined to comment beyond their statement issued just after 2am on Tuesday, which read: ‘A 72-year-old man arrested on suspicion of misconduct in public office has been released on bail pending further investigation.’

The force said later he has been bailed to the end of May.