Hisham Qandil, appointed as premier by Morsi in August 2012, remained in office until the president's ouster in July.
Qandil was sentenced to a year in jail for failing to execute a court verdict to re-nationalise a company that was privatised in 1996. A Cairo appeals court upheld the sentence in September, state-run MENA news agency reported.
"Security forces managed to arrest Hisham Qandil, former prime minister, in carrying out a court order issued against him," Egypt's interior ministry said in a statement.
Since Morsi's ouster, his supporters have been facing a harsh crackdown and thousands of Muslim Brotherhood activists are currently in detention.
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