Grant Hackett has been released from the watch-house on the Gold Coast without charge.
Reporters followed the Olympian as he left the scene.
Hackett's brother also spoke to the media:
Former Olymipic champion Grant Hackett has been arrested on the Gold Coast following a disturbance.
The 36-year-old was arrested on Wednesday afternoon and driven to the Southport watch house in handcuffs.
A Queensland Police spokesman confirmed Hackett had been arrested at a home at Surfer's Avenue, Mermaid Waters following reports of a disturbance.
It's understood Hackett's father Nev called police to the address because his son was in an agitated state and apparently intoxicated.
Nev Hackett told News Corp Australia his son had been arrested over "mental health issues" but would not comment further.
Seven News has reported witnesses claim Hackett was "going off" and stabbing a chopping block.
No charges have been laid at this stage.
Regarded as Australia's best 1500m swimmer of all time, Hackett won gold medals in the long-distance event at the Sydney and Athens Olympics and finished with silver at Beijing in 2008 when he was the swim team captain.
He also won gold in the 4x200 freestyle relay at the Sydney Games and silver behind Ian Thorpe in the 400m at the Athens Games in 2004.
Hackett retired after his near miss at the Beijing Games but made a comeback at 35 last year in an unsuccessful bid to make the Rio Olympics.
He previously ran into trouble on a flight from Adelaide to Melbourne last April where he abused a fellow passenger, later apologising for his "poor behaviour"
"I have stuffed up more than once and am working on these issues," he said at the time.