Gatekeepers News reports that German federal prosecutors said the man worked at the British embassy in Berlin.
He allegedly passed documents to Russian intelligence “at least once” in exchange for an “unknown amount” of money.
He was arrested in Potsdam outside Berlin on Tuesday and his home and workplace have been searched.
The German Foreign Ministry said it is taking the case “very seriously”.
Foreign Minister Heiko Maas told reporters that “spying on a close ally on German soil is absolutely unacceptable and we are in full solidarity with our British friends.”
Gatekeepers News reports that the arrest was the result of a joint UK-German investigation, according to the statement read.
London’s Metropolitan Police confirmed the arrest of a 57-year-old British national in Germany, as well as the involvement of the Met’s Counter Terrorism Command.
On Wednesday, the man appeared before an investigating judge in Karlsruhe where he was ordered to remain under arrest pending further inquiries.
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