At around 1.30am the star and a 23 year old woman were taken to a police station in the Södermalm area of the city, where they provided urine samples.
“The people we arrested showed clear signs of being under the influence of narcotics,” said Lars-Erik Baarsen at Södermalm police to Aftonbladet.
Snoop Dogg performed on Sunday evening at the Stockholm venue Globen, along with fellow rapper P Diddy.
After the concert he was due to attend a party at the Scandic Anglais hotel in Stockholm’s Stureplan – but he never made it to the bash. In what appeared to be a planned raid, the star’s car was stopped with several others by police on Centralbron, a bridge in the city.
Earlier in the evening, according to newspaper Aftonbladet, a room at the Grand Hotel, where Snoop Dogg was staying, was searched by police.
On Monday morning the 35 year old star, whose real name is Calvin Cordozar Broadus Jr, was released.
“He is said to have behaved appropriately. Now the prosecutor can proceed with this. It’s usually a fine,” said Lena Baaki, Södermalm police spokesman, to TT.
The fine for a minor offence is usually based on the individual’s earnings.
It is not the first time Snoop Dogg has been in trouble with the Swedish authorities. In summmer 2005 the American rapper caused a stir when he showed a soft porn film before his concert at the Hultsfred festival.