The dad of four, 35, was believed to have been held as part of a joint operation with the Gambling Commission, probing bets placed on him to lose.
It makes him the latest in a string of top-flight players to be investigated over unusual betting patterns.
It left the sport stunned last night. BBC pundit and ex-world champ Ken Doherty, 40, said: "It's a huge surprise. There's never been any rumours surrounding him."
Snooker legend Jimmy White, 47, said: "I'm in total shock."
Lee's agent Paul Mount said: "He's been putting in a lot of practice. The last thing he'd be doing is throwing matches."
Lee was once ranked world No5 but is now 25th, making just £50,000 prize money last year. In 2000, he had to return £7,500 winnings after testing positive for marijuana.
Cops were believed to have arrested Lee at home in Trowbridge, Wilts, at lunchtime. Yesterday a man answering the door said: "Stephen won't be back until tomorrow."
A West Midlands Police spokesman said: "A 35-year-old man from Wiltshire was arrested this morning on suspicion of cheating."
Last year Stephen Maguire, 28, and Jamie Burnett, 34, were quizzed on alleged fixing of a UK Championship game in Telford, Shrops. Aussie Quinten Hann, 32, was banned from the sport for eight years in 2006 over a match-fixing scandal rumbled by The Sun.
http://www.thesun.co.uk/sol/homepage/ne ... -quiz.html
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