Max Clifford has insisted that allegations of sexual offences against him are "damaging and totally untrue" after he was questioned by police for 13 hours.
The publicist was arrested at his Surrey home early on Thursday by officers from Operation Yewtree, the investigation set up in the wake of the Jimmy Savile abuse scandal.
Mr Clifford, 69, was held on suspicion of historic sex offences and taken to Belgravia police station in central London for questioning.
Speaking on the station's steps after he was released on bail, he said he thought he was facing two allegations dating back to 1977.
He said: "These allegations are damaging and totally untrue. On a personal level they are very distressing for myself, my wife, my family and loved ones.
"Anyone who really knew me all those years ago, and those who have known me since, would have no doubt that I would never act in the way I have today been accused."
The publicist was bailed at Belgravia police station The PR guru is the fifth person to be arrested by police investigating the Jimmy Savile sex abuse scandal.
Police said he has been bailed to appear at a later date but refused to give any further details.
A Scotland Yard spokesman said: "The individual (held today) falls under the strand of the investigation we have termed 'others'. We are not prepared to discuss further."
Police working on Operation Yewtree had said they were looking at three categories of offences; those allegedly committed by Savile alone, those allegedly committed by Savile and "others", and alleged offences by "others".
Mr Clifford's lawyer, Charlotte Harris, said he would assist the police "as best he can with their enquiries".
Gary Glitter, comedian Freddie Starr, DJ Dave Lee Travis and a man in his 70s, reported to be former television producer Wilfred De'Ath, have been arrested and bailed as part of the probe.
Last month Scotland Yard said it was dealing with about 450 potential victims, the vast majority of whom claimed they had fallen prey to Savile.
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