The comedian, 69-years-old, was questioned in Warwickshire on Wednesday, but has now been released on bail.
The allegations come from Karin Ward, who claims Starr attempted to grope her in 1974 when she was 14-years-old.
Both Karin Ward an Freddie Starr appeared on Jimmy Savile’s show Clunk Clink, in 1974.
The police explained that they had an entire list of people who they were intending to arrest over allegations made by victims of Savile and his collaborators.
Scotland Yard released a statement about Starr: “Officers working on Operation Yewtree yesterday arrested a man in his 60s in connection with the investigation.
“The man, from Warwickshire, was arrested at approximately 5.45pm on suspicion of sexual offences, and was taken into custody. He has since been bailed.
“’The individual falls under the strand of the investigation we have termed ‘Savile and others’.”
Meanwhile, Star is desperate to clear his name, and strongly denies the allegations. Previous to his arrest he said. “Ask me anything – anything. I’ll be interviewed by any police force.”
“I was horribly, horribly humiliated by Freddie Starr,” said Ward to the Daily Mail, “[he] had a very bad attack of wandering hands and had groped me, and I didn’t like him because he smelled like my stepfather and it frightened me and freaked me out, and I rebuffed him.”
After recent allegations against deceased TV presenter Jimmy Savile, the former star’s £4.3 million assets have been frozen.