Police spokesman Hasan Haneef said Nasheed was arrested on Fares-Mathoda island, in the Gaaf Dhaal atoll, around 440 km away from the capital Male on Monday.
"He is in police custody in order to be produced before courts on Tuesday," Haneef added.
On Sunday, Hulhumale magistrate court issued an arrest warrant on Nasheed after he twice defied summons to appear before courts.
The same courts, two weeks ago, ordered him not to leave the capital, Male, without the court''s permission. Nasheed defied that order too.