The attacker, 22-year-old Salman Abedi, reportedly met with members of the Katibat al-Battar al-Libi, during trips to Tripoli and Sabratha, Libya.
He was held the Rusholme area last night on suspicion of offences contrary to the terrorism act.
It is understood that the search did not uncover the suitcase and...
Officers evacuated an area of the city while they evaluated a white Nissan Micra and have asked people to avoid the area, the BBC reported.
A 15-year-old boy, a 34-year-old woman, and four men have been released without charge.
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Police said 17 people have been arrested in connection with the investigation.
"This is potentially a significant development in the investigation", Detective Chief Superintendent Russ Jackson said in a statement, which added that enquiries concerning the vehicle were ongoing.
Grande shared an image of her visit to Royal Manchester Children's Hospital with her 107 million Instagram followers.
Brothers Isaac and Abz Forjani, who were arrested by armed police soon after the attack before being released without charge, said they had been left "traumatised" by their cousin's actions.
Earlier Ariana Grande arrived in the United Kingdom, ahead of Sunday's benefit concert for the victims of the Manchester terror attack.
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