James Desborough, who was the paper's U.S. editor, and based in Los Angeles was arrested as he arrived at a south London police station today.
The questioning of an America-based journalist raises fresh questions about whether the NotW were involved in hacking phones in America.
The FBI are probing claims that 9/11 victims may have had their phone's hacked by journalists working for News Corp - the parent company of the News of the World.
The phone hacking is not alleged to have occurred while the reporter was in the U.S.
Desborough, 38, met police at 10.30am this morning for a pre-arranged appointment and was arrested.
It has been revealed that Celebrity couple Leslie Ash and Lee Chapman have settled their phone hacking claim against the News of the World - and now plan to take action against other newspapers.
The actress and the former footballer sued the now-closed Sunday tabloid over fears that it illegally listened to their voicemails while Ash was recovering from a superbug in hospital in 2004.
The couple said they were 'pleased' the claims they and their sons brought against the paper's publishers, News Group Newspapers, and private investigator Glenn Mulcaire had been settled.
In another development this evening, the private investigator jailed over phone hacking for the newspaper revealed that he is taking legal action against News International.
Glenn Mulcaire, who was jailed for six months in 2007 for intercepting messages on royal aides' phones, has lodged papers at the High Court.
A spokeswoman for News International, which owned the now-defunct Sunday tabloid, confirmed the action was being taken, adding that 'the claim will be vigorously contested'.
via source
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