A total of 18 people were arrested after the suicide attack on 22 May that killed 22 people and injured 116 as they left an Ariana Grande concert.
His father, Ramadan Abedi, was arrested in Tripoli on May 24, along with Salman's brother Hashim, who Libyan security forces said was "aware of all the details" of the attack.
The arrest was made after police seized a auto, which they said could provide a "significant development" in the investigation.
Ten men still remain in custody.
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On Friday police located a white Nissan Micra in a vehicle park of a block of apartments in the Rusholme area of Manchester that they believe could point to Abedi's whereabouts between May 18 and 22 in the lead-up to the bombing at the pop concert.
Ismail Abedi was filmed being handcuffed to a police van outside a Morrisons supermarket in Chorlton-Cum-Hardy, south Manchester on May 23.
"We are very interested in anything people can tell us about the movements of this vehicle, and who was in it, over the past months", he said.
That Abedi was in contact with the terrorist cell brings up the possibility that Islamic State operatives in Libya have now twice directed attacks in Europe. His older brother and a cousin remain in United Kingdom police custody.
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