The Bishop of Lincoln, the Right Reverend Stephen Conway, has been arrested on suspicion of sexual assault.
Lincolnshire Police confirmed a 68-year-old man had been arrested as part of an "ongoing investigation following an allegation that a man was sexually assaulted between 2018 and 2025".
Bishop Conway has been released on conditional bail.
Earlier, a statement shared on the Diocese of Lincoln website confirmed the bishop had been "suspended from ministry" following a complaint to the Church of England's national safeguarding team.
The statement said "support is in place for those affected", and a referral had been made to the "appropriate statutory authorities".
No details of the complaint were given.
The statement added: "We understand that this will be a deeply unsettling time".
The Bishop of Grantham, the Right Reverend Dr Nicholas Chamberlain, will be standing in during the suspension.
Bishop Conway has been Bishop of Lincoln since 2023, and has previously served as Bishop of Ramsbury and Bishop of Ely.
He has been a member of the House of Lords since 2014.
Sky News has contacted Bishop Conway for comment.
(c) Sky News 2026: Bishop of Lincoln arrested on suspicion of sexual assault
Trump announces global tariff after Supreme Court rebuke
Over 1,000 councillors sign Palestine solidarity pledge amid claims of 'political opportunism'
Bodies found in Eryri mountain range during search for two missing men
Charles Bronson: Britain's 'most notorious prisoner' pledges to 'expose unlawful sentence' ahead of parole hearing
How Iran might be preparing itself for a potential US strike