Officials said police, coordinating with Interpol authorities, surrounded the residence of Gadhafi al-Dam Tuesday morning, where a gunfight ensued before his capture, Ahram Online reported.
Al-Dam defected to Egypt at the beginning of the Libyan revolution in 2011. The new Libyan government has been demanding his return to Libya so he could be tried for alleged involvement in crimes against humanity during the Gadhafi regime.
Al-Dam, who was also coordinator of Egyptian-Libyan relations during Gadhafi's reign, has large investments in Egypt, Ahram Online said.
Gadhafi was killed during fighting in his hometown of Sirte in October 2011, ending a rebel uprising against his regime.
Moore to attend retreat in to avoid Kutcher's wedding
'How to Train Your Dragon 2' releases 5-minute clip