The 45-year-old man is suspected on reasonable grounds, a lower level of suspicion, according to Ystad police spokesperson Ewa-Gun Westford.
Police have searched the man’s home but won’t say what they might have found.
Another person with ties to the 45-year-old was also questioned by police, but was not arrested.
Following the Wednesday morning fires in Simrishamn, witnesses also reported seeing a man near the riding a bicycle near where the fires were set, a behaviour exhibited previously by the 45-year-old.
The man was released at the end of last year following a three-year prison sentence for two arson attempts in Dalarna in north central Sweden.
He has also come up in investigations of other fires in different parts of Skåne.
Four fires broke out in Simrishamn within a few hours of each other on Wednesday morning, including blazes in storage areas and attics and police suspect the fires were set intentionally.
“Even early on it was hard to find a natural cause for these fires,” said rescue worker Eva Ljungkvist.
The first two fires were reported around 6:30am, with two more fires being reported in the next hour, all at different addresses in Simrishamn.
An investigation continues as police look for more witnesses.
The 45-year-old man being held in the case will undergo further questioning on Thursday.