The student, who cannot be named for legal reasons, from the prestigious Surrey school was arrested on Thursday and released on bail after questioning.
A spokesperson for the school, which is in Godalming, confirmed that one of its pupils was interviewed by detectivesand said it was related to material allegedly found on his computer.
The Telegraph claims that the arrest came amid reports that the boy took 'indecent images' of other pupils in the school showers. He is then said to have allegedly stored the images on his computer.
A spokeswoman for Surrey Police told the BBC: "A 16-year-old boy was arrested in Godalming on suspicion of making indecent images of a child. Following interview he has been released on police bail."
The £30,534-a-year school was founded in 1611 and admits boys from 13 to 18 as boarders, with girls and day pupils in its sixth form. Its past alumni include David Dimbleby, Robert Baden-Powell, Peter Gabriel, and convicted sex abuser Jonathan King.