Former News of the World editor Andy Coulson and one of his former top reporters are being questioned about alleged corruption after a dramatic double arrest by Scotland Yard.
Former royal editor Clive Goodman - who was jailed in January 2007 over the scandal - had been rearrested in connection with alleged payments to police and Mr Coulson, the ex-Downing Street communications chief, is also being questioned over phone hacking during his time at the paper.
The 43-year-old ex-editor of the News of the World was held at a south London police station, sources said.
The arrest piles further pressure on the Prime Minister, who gave him a job at No 10 despite his association with the scandal.
The widely-anticipated arrest is the latest bombshell in a catastrophic week for News International chiefs, who announced they were shutting the Sunday tabloid because it had betrayed its readers' trust.
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