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According to Sky News, the former England star was taken into custody last night and is still being questioned by police on suspicion of possession of a Class A drug.
A Northumbria Police spokesperson said: "At shortly after 5.30pm yesterday, police attended a property in North Tyneside. A 43-year-old man was arrested on suspicion of possession of a Class A drug.
"A second man, aged 43, was later arrested on suspicion of being concerned in the supply of drugs. Both men are still in custody and enquiries are ongoing."
Earlier this month, Gascoigne was warned that he could face jail after being caught drink-driving.
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