Following the arrest Lord Mandelson’s lawyers complained about the decision to detain him and said it was prompted by a “baseless” suggestion he was planning to “take up permanent residence abroad”.
On Friday a Met spokesperson said the 72-year-old had been released under investigation, with the investigation ongoing.
His lawyers at Mishcon de Reya said: “In light of speculation following his arrest last week, we wish to clarify that the Metropolitan Police have removed all of Peter Mandelson’s bail conditions and returned his passport.
“Our client did not and does not pose a flight risk and will continue to cooperate with the police investigation. He will not be making any further comment at this stage.”
Sir Lindsay has confirmed he passed on information to the police and the force apologised to him for “inadvertently revealing” he was the source of information.
The allegations against Lord Mandelson surfaced after the US Department of Justice released a tranche of documents last month, including emails between him and Epstein.
The BBC understands Lord Mandelson’s position is that he has not acted in any way criminally and was not motivated by financial gain.
He became the British ambassador to the US in February 2025 but was sacked in September after Downing Street said new information about the depth of his relationship with Epstein had emerged.
Prime Minister Sir Keir Starmer has come under pressure over what he knew about that relationship when making the appointment, and his chief of staff Morgan McSweeney has resigned over it.