The suspect had been quarantining with his family in the city after arriving from Afghanistan, Sky News reports. Police are believed to have raided the address on or around August 31 or September 1. At this stage it is unclear why the arrest has been made.
The Home Office and the Ministry of Defence have declined to comment.
A UK Government spokesperson said: "We don't comment on individual cases.”
A source close to the investigation claimed the Afghan commando arrived in the UK on a British rescue flight from Kabul airport last month.
The commando and family members were placed in a Manchester hotel for a period of self-isolation.
Afghanistan is currently on the Government’s coronavirus red-list for travel.
The Ministry of Defence evacuated more than 15,000 people from Afghanistan following the Taliban takeover.
Around 8,000 of those rescued by British forces were Afghan nationals.
The Taliban took over control of Kabul on August 14 and US President Joe Biden set a deadline of August 31 to complete the flights out of the country.
US forces and its coalition partners flew out more than 123,000 people, including around 5,500 Americans, in just over two weeks.
Many of those rescued by British forces had served alongside the army in the 20-year war in Afghanistan.
MPs and military chiefs have raised the prospect of a creating a new regiment in the Armed Forces for Afghan soldiers – much like the Gurkhas.
Tom Tugendhat, Chairman of the Commons Foreign Affairs Select Committee, has previously backed the plans.
Speaking to the Telegraph in August, the Afghan veteran and Tory MP said: “We trained and fought alongside many Afghans who are now in the UK.
“They’ve proved their loyalty a thousand times. If they want to serve, we should welcome them.
“I would love to see a regiment of Afghan scouts.”
The UK plans to resettle thousands of refugees through the established Afghan Relocations and Assistance Policy.
The Government said 5,000 Afghans will be resettled in the UK in 2021, rising to 20,000 over the next few years.