A man who has been arrested on suspicion of preparing a terrorist act is a former jihadist associate of Usman Khan, the London Bridge attacker, the Guardian has learned.

Nazam Hussain, 34, was arrested on Saturday evening as a result of a review of the existing licence conditions of convicted terrorism offenders.

He had been released from a prison sentence for being part of a 2010 plot to bomb the London Stock Exchange and other potential targets. He was convicted alongside Usman Khan, 28, who on Friday stabbed two people to death in an attack on London Bridge.

Counter-terrorism investigators carried out urgent checks on six of the London Stock Exchange plotters who had been sentenced for their part in the conspiracy, but released partway through their sentence on licence.

The man’s home was raided and then counter-terrorism detectives decided they had grounds to arrest him. He has since been recalled to prison due to a suspected breach of his licence conditions.

The arrest was made by the West Midlands counter-terrorism unit. In a statement, police said:

“A search warrant was conducted [on November 30] in connection to a wider ongoing review of existing licence conditions of convicted terrorism offenders.

“As a result of a search of his home address, the 34-year-old was arrested on suspicion of preparation of terrorist acts contrary to Section 5 of the Terrorism Act 2006. These searches continue.”

Police added they did not believe that there is was any immediate risk to public safety.

Furthermore police said that there was no information to suggest that the arrested man was involved in the attack at London Bridge.

The attack by Khan on Friday, the first to claim a life in the UK since a wave of atrocities in 2017, led to the Ministry of Justice ordering an urgent review of terrorists released from prison partway through their sentence.

Khan, 28, killed two people in a knife attack at a conference held in Fishmongers’ Hall. He had been released in December 2018 halfway through his 16-year sentence for the 2010 plot.

The man arrested on Saturday was also sentenced to 16 years’ imprisonment.