Jones, 83, was arrested in Sydney on Monday morning before police performed a search on his Circular Quay unit.
Investigators are yet to confirm that any charges have been laid.
The arrest followed a months-long investigation into allegations aired in Nine newspapers that the talkback host had repeatedly used positions of power to prey on young men.
Those allegations included putting his hands down the pants of students while he was a teacher and indecently assaulting a number of young men throughout his influential broadcasting career.
Jones' lawyer Mark O'Brien denied the allegations on his client's behalf when they were first detailed in December 2023.
"Our client denies ever having indecently assaulted the persons referred to ... and (the) suggestion that he has is scandalous, grossly offensive and seriously defamatory of him," he said in a statement at the time.
In a statement on Monday, NSW Police said an arrest had been made after a near-nine month investigation.
"In March 2024, State Crime Command's Child Abuse Squad established Strike Force Bonnefin to investigate a number of alleged indecent assaults and sexual touching incidents between 2001 and 2019," the statement said.
"Following extensive inquiries, about 7.45am strike force detectives executed a search warrant at a unit in Circular Quay where they arrested an 83-year-old man."
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028
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