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Tulisa Contostavlos has been arrested on suspicion of supplying class A drugs.
The N-Dubz star, who confirmed her departure from The X Factor late last month, was at the weekend revealed to have been recorded offering to supply cocaine and cannabis to an undercover reporter from The Sun on Sunday.
The tabloid claimed that half an ounce of cocaine worth £800 changed hands following a deal that took place at London's Dorchester Hotel.
Contostavlos was arrested earlier today (June 4) by appointment along with a 35-year-old man and they are currently in custody.
The Metropolitan Police confirmed: "Officers from Westminster have arrested two people - a 35-year-old man and a 24-year-old woman - on suspicion of supplying class A drugs. They are in custody at a Central London police station."
Digital Spy has reached out to Contostavlos's publicist, who declined to comment, and her agents.
A Scotland Yard source commented on Sunday (June 2) that they expected Contostavlos to be questioned "within days" after a spokesperson for the police said they were "considering the information" presented to them.
In audio footage released by The Sun on Sunday, Contostavlos replied when asked if she could provide drugs: "Half my phone book sells it. Of course I can get it for you.
"Half the guys I know are drug dealers. One's a massive cocaine dealer. He's my best friend. He's a gangster - he's my gangster."
The 'Young' singer also claimed to have a code for drugs, referring to them as white and green "sweets".
Contostavlos stated during the taped conversation that she does not use drugs herself.
Her arrest comes on the same day as her X Factor replacement Sharon Osbourne made her debut at the first round of auditions for the new series in Glasgow.
X Factor told the BBC that Contostavlos's departure from the programme and claims of her supplying drugs "are unconnected". DS has also offered the show's representatives opportunity for further comment.
Contostavlos has received support on Twitter from a small number of her celebrity friends, with grime three-piece Platnum writing: "Fully fuming ..... We have murderes and peodophiles walking this street ......... I'm done."
The group posted a 'sad face' emoticon as news of the Female Boss singer's arrest broke, which was retweeted by Waterloo Road and Strictly Come Dancing star Chelsee Healey, who was pictured partying with Contostavlos in Marbella days before the scandal emerged.
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"Forgive me for what I have done, Cause I'm young, Yeah I'm young"