Mark 'Bomber' Thompson has been arrested and released without charge, pending further investigation.
A 54-year-old Port Melbourne man was arrested on Tuesday following an investigation into drug trafficking, according to police.
Police said in a statement on Tuesday that a 54-year-old from Port Melbourne was arrested and released "pending further enquiries".
It comes after Thompson's Port Melbourne house was raided by police on Friday morning.
Reports emerged on Tuesday that the raid was part of a drug trafficking investigation.
Thompson led Geelong to premierships in 2007 and 2009 before leaving the club to join Essendon in 2010 as their senior assistant.
He was embroiled in Essendon's supplements saga and was fined $30,000 for his role in it.
He filled James Hird's position as Essendon coach in 2014 before losing interest in the sport.