Greater Manchester Police said the boy was first detained on April 2 on suspicion of preparing for an act of terrorism after they had uncovered a "credible terrorist threat".
Detective Chief Superintendent Tony Mole, from the North West Counter Terrorism Unit (NWCTU), said: "We are continuing to work closely with the police in Australia and Lancashire and I want to reassure the public that we have not uncovered an imminent attack in the UK and there is no immediate threat towards the communities of Lancashire, the North West and the UK.
As part of the investigation officers from NWCTU, working with Lancashire Police, authorities uncovered communication between a teenager in Blackburn and a man in Australia.
The boy was then detained on suspicion of preparing for an act of terrorism under Section 5 of the Terrorism Act 2006 and questioned.
On Saturday April 18, he was further arrested on suspicion of being concerned in the commission, preparation or instigation of acts of terrorism and remains in police custody for questioning.
It comes after Australian police made several arrests in relation to an alleged plan to stage an attack at events in Melbourne to mark the centenary of the Anzac landings.
Australian police confirmed it was linked to the arrest of five teenagers in Melbourne over alleged plans to target police at an Anzac memorial.
In a joint statement, Victoria Police and the Australian Federal Police said they "can confirm a link between the arrest of a 14-year-old boy in Blackburn, Lancashire, in the United Kingdom on Saturday with Operation Rising, a Joint Counter Terrorism Team operation."
Anzac Day honours Australian and New Zealand soldiers who have died in World War I.
Australians and New Zealanders in the UK traditionally observe the occasion, which takes place on April 25 each year, by holding services in Westminster and Hyde Park in central London.
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