Max Clifford, 69, head of Max Clifford Associates, represents stars such as Simon Cowell and Olympic cycling champion Sir Chris Hoy. He was arrested at his home in suburban Surrey and released on bail after questioning at a London police station, The Guardian reported.
The scandal began with allegations that Sir Jimmy Savile, a television presenter and disc jockey who died in late 2011, had molested girls in the 1960s and 1970s. A number of people have been arrested, including singer Gary Glitter, comedian Freddie Starr, DJ Dave Lee Travis and former BBC producer Wilfred De'Ath.
After his release, Clifford said the allegations were "damaging and completely untrue."
"Anyone who really knew me all those years ago and those who have known me since will have no doubt that I would never act in the way that I have today been accused," he said.
In an interview last month on ITV, Clifford said he had received calls from stars worried because they had appeared on one of Savile's shows.
"It is a situation which could easily turn into a witch hunt," he said. "A lot of big stars are frightened."
Celebrity Families of 2014 [PHOTOS]