Brazil's former president Michel Temer has reportedly been arrested as part of a sweeping anti-corruption investigation known as "Car Wash".

He was detained in Rio de Janeiro on Thursday morning in a sprawling probe of alleged graft in the construction of nuclear plant Angra 3, prosecutors said. His lawyer confirmed the arrest.

Mr Temer was president from 2016 to 2018, taking office following the impeachment of Dilma Rousseff, for whom he served as vice-president for six years.

He was succeeded this year by Jair Bolsonaro, a far-right former military officer who is himself implicated in a separate corruption scandal.

The arrest, which has rattled Brazil's political class, saw Brazil's currency slip as much as 1 per cent on the news and the Bovespa stock index fell 1.5 per cent, as the prospect of new arrests of prominent politicians threatened to delay debate over sweeping economic reforms.

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(Photo by Carl DE SOUZA / AFP)CARL DE SOUZA/AFP/Getty Images CARL DE SOUZA AFP/Getty Jair Bolsonaro: Brazil's far-right leader inauguration Firefighters spray water at supporters of Brazilian President-elect Jair Bolsonaro to cool them down, while they gather to wait for his inauguration ceremony at "Tres Poderes" square in front of the Planalto Palace in Brasilia, on January 01, 2019. - Brazil entered a new chapter in its history on Tuesday, embracing a far-right president, Jair Bolsonaro, whose determination to break with decades of centrist rule has raised both hopes and fears. (Photo by EVARISTO SA / AFP)EVARISTO SA/AFP/Getty Images EVARISTO SA AFP/Getty Jair Bolsonaro: Brazil's far-right leader inauguration Supporters take pictures as Brazil's new President Jair Bolsonaro drives past before his swear-in ceremony, in Brasilia, Brazil January 1, 2019. REUTERS/Ricardo Moraes RICARDO MORAES Reuters Jair Bolsonaro: Brazil's far-right leader inauguration Brazil's new President Jair Bolsonaro and his wife, Michelle Bolsonaro, arrive at Brazil's National Congress, in Brasilia, Brazil January 1, 2019. REUTERS/Pilar Olivares PILAR OLIVARES Reuters Jair Bolsonaro: Brazil's far-right leader inauguration Supporters of Brazilian President-elect Jair Bolsonaro, gather at the "Tres Poderes" square in front of the Planalto Palace in Brasilia, before his inauguration ceremony on January 01, 2019. - Brazil entered a new chapter in its history on Tuesday, embracing a far-right president, Jair Bolsonaro, whose determination to break with decades of centrist rule has raised both hopes and fears. (Photo by EVARISTO SA / AFP)EVARISTO SA/AFP/Getty Images EVARISTO SA AFP/Getty Jair Bolsonaro: Brazil's far-right leader inauguration Supporters of Brazilian President-elect Jair Bolsonaro, gather to wait for his inauguration ceremony at "Tres Poderes" square in front of the Planalto Palace in Brasilia, on January 01, 2019. - Brazil entered a new chapter in its history on Tuesday, embracing a far-right president, Jair Bolsonaro, whose determination to break with decades of centrist rule has raised both hopes and fears. (Photo by EVARISTO SA / AFP)EVARISTO SA/AFP/Getty Images EVARISTO SA AFP/Getty Jair Bolsonaro: Brazil's far-right leader inauguration Jair Bolsonaro addresses Congress, during his swearing-in ceremony as Brazil's new president, in Brasilia on January 1, 2019. - Bolsonaro takes office with promises to radically change the path taken by Latin America's biggest country by trashing decades of centre-left policies. 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According to O Globo, Mr Temer was arrested by officers who are also seeking former energy minister Moreira Franco.

The warrants were issued by a judge in the 7th Federal Criminal Court of Rio on Wednesday, the newspaper reported.

Mr Temer, a longtime legislator, was hit with corruption charges during his presidency which were blocked by allies in the lower house Congress. The legislative body must authorise charges against a sitting president.