A man from Chichester was arrested and released under investigation following a fire in a block of flats on Thursday (March 21).
Police officers forced entry into a flat in Longley Road and when they were confronted by a small fire just inside the property which was quickly extinguished.
A 37-year-old man from Chichester was arrested shortly after on suspicion of arson with intent or reckless as to whether life was endangered and with possession of a class A drug, police have said.
Residents of the building on Longley Road in Graylingwell evacuated the building as the fire service attended the incident at around 4pm.
A spokesman for West Sussex Fire and Rescue Service said a team responded to reports of a small fire in a second floor flat involving the front door but that the fire was out upon arrival.