Swedish Prosecutor Agneta Hilding Qvarnstrom said 34-year-old Anders Hogstrom was detained in Stockholm on a European arrest warrant.
Hilding Qvarnstrom said Hogstrom will be appointed a defense lawyer and questioned by Swedish investigators before authorities can decide on extraditing him to Poland.
Polish officials have said Hogstrom is suspected of incitement to commit theft of a cultural treasure.
The infamous sign - which means "Work Sets You Free" in German - was stolen in December from the site of the Nazis' former Auschwitz death camp in Poland. Polish police found it in the woods three days later cut up into three pieces and charged five Polish men with its theft.
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