Egyptian police have arrested an Australian freelance journalist on suspicion of paying Egyptians to stage protests against the authorities.

Security officials say Austin Mackell and his translator, Aliya Alwi, have been detained in the northern city of Mahalla.

The arrests took place on the same day activists staged student strikes to mark the first anniversary of Hosni Mubarak's overthrow as leader.

Ms Alwi has posted details of the arrest on her Twitter account, describing how three witnesses have given evidence against the pair.

"Charges brought against of inciting protest and vandalism. Witnesses have been produced to confirm it," Ms Alwi tweeted before the transfer.

"We were now transferred to another police station, confused. Three witnesses testifying against are sitting across the room includes an eight year old."

She says they are being transferred to a military intelligence office in the nearby city of Tanta.

Earlier, they were faced with violence from locals.

"Our car got rocked and beaten against the glass, got called a whore and all sorts of things," Ms Alwi tweeted.

Cairo-based Australian journalist Jess Hill, who knows Mr Mackell, says they had travelled to Mahalla to meet a trade union activist amid a series of strikes.

"What we know is that they were mobbed by residents. Their car was attacked and they were taken to a police station and initially it looks they were just being kept there for their safety, and then witnesses were brought in to attest to that charge about bribing locals to strike," she said.

Egyptian authorities have repeatedly accused foreigners of stirring up unrest in Egypt, which has seen a spate of deadly protests in recent months.

Mr Mackell has spoken to Australian officials and told them he is being treated appropriately by police.