Police officers arrested Lord Mandelson at his London home on Monday afternoon because they worried he was a flight risk, his lawyers have said.
The peer's lawyers have told the BBC there is "absolutely no truth" in the suggestion that Lord Mandelson was planning to leave the UK and move abroad.
The Met has said it will not comment.
The former Labour minister was arrested by the Metropolitan Police on suspicion of misconduct in public office on Monday and later released on bail, pending further investigation.
A spokesperson for Mishcon De Reya, Lord Mandelson's lawyers, said: "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 [Metropolitan Police Service] 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."
Mandelson's laywers claim he was arrested over fears he was a flight risk
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Mandelson's laywers claim he was arrested over fears he was a flight risk
https://www.bbc.co.uk/news/articles/c05vey47yddo
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