The 66-year-old local man was arrested on Saturday in Brighton.
At the time, a Sussex Police spokeswoman said: “We are aware of footage circulating on social media showing a man in Brighton being detained on suspicion of engaging in online sexual communications with a child.
“This is an ongoing and active investigation.”
Sussex Police confirmed he has now been released on bail until April 10 while further enquiries are carried out.
Police have also confirmed that a second man, aged 40, was also arrested on Saturday on suspicion of engaging in online sexual communications with a child.
He has been released on bail until April 11.
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