Sarkozy, who was France’s rightwing president from 2007 to 2012, was being questioned early on Tuesday morning at a police station in Nanterre, north-west Paris, as part of an inquiry into whether Gaddafi and others in Libya illegally financed his winning election campaign in 2007.
The investigation is potentially France’s most explosive political financing scandal in decades. Sarkozy has repeatedly denied the allegations, dismissing the claims as "grotesque".
It is the first time Sarkozy has been questioned by police over the allegations. A French inquiry into alleged illegal campaign funding from Libya was opened in 2013. The inquiry did not name anyone as a suspect, and has centred on claims of corruption, influence trafficking, forgery, abuse of public funds and money laundering.