Comedian Jim Davidson "vigorously denies" allegations made against him by two women, his solicitor said.
The former Generation Game and Big Break host was questioned and bailed by detectives investigating the Jimmy Savile sex abuse scandal over allegations dating back 25 years, according to Henri Brandman.
Scotland Yard said earlier that a 59-year-old man was held in west London at around noon yesterday after a 53-year-old man had been arrested in Hampshire, both on suspicion of sexual offences linked to Operation Yewtree.
They have since been released on bail until March, pending further inquiries.
In a statement, Mr Brandman said: "Two women have made allegations in respect of Jim that date back approximately 25 years. The complainants were then in their mid 20s.
"Jim vigorously denies the allegations. He answered police questions as fully as he was able after this passage of time.
"He has not been charged with any offence.
"Neither he nor I will be making any further comment."
The allegations are not directly linked to Savile, the Metropolitan Police said. Davidson, 59, was reportedly arrested at Heathrow Airport as he returned to the UK to be a contestant on Channel 5's Celebrity Big Brother.
The station would not comment on his inclusion, but he had been preparing to take part in the show, which returns to screens tonight.
He will now no longer be taking part and programme chiefs are believed to have been forced into a last minute rejig.
Other figures who are said to be appearing include Frankie Dettori, X Factor star Rylan Clark and the model and actress Paula Hamilton.
Davidson found fame as a stand-up comedian before presenting television favourites including the Generation Game and Big Break.
He founded the British Forces Foundation charity in 1999 to provide entertainment for British troops around the world. In 2001 he was made an OBE for his services to charity.
Six men and a woman were seen leaving Davidson's house in Stockbridge, Hampshire, yesterday carrying boxes.
The men, wearing smart trousers and jumpers, left the country cottage at about 7pm in three cars.
Earlier, one of the cars, a BMW fitted with rear siren lights similar to an unmarked police car arrived at the property and two men wearing black combat trousers and black jackets entered the property before leaving a short while later.
The group carried boxes and other items wrapped in brown paper which they placed in the cars before driving off.
When asked, they would not confirm that they were police officers. Neighbours said they were unaware of what was happening at the property.
Scotland Yard is leading a national investigation into allegations against disgraced television presenter Savile and a number of other high-profile figures.
They have separated the inquiry into three strands: claims against Savile, those involving Savile and others, and those involving others. The latest arrests fall under the "others" strand.
So far, officers have questioned 10 people including former pop star Gary Glitter, comedian Freddie Starr and PR guru Max Clifford.
Last month, police said a total of 31 allegations of rape had been made against former Top Of The Pops presenter Savile.
Some 589 people have come forward with information relating to the scandal, with a total of 450 complaints against the BBC presenter and DJ, mainly alleging sexual abuse.
Detectives have recorded 199 crimes in 17 force areas in which Savile is a suspect.