Cypriot police said they have arrested a Canadian man wanted in connection with an alleged Russian spy ring broken up in the United States as he was about to board an early flight to Budapest yesterday.

Christopher Robert Metsos, 54, was arrested at Larnaca airport after immigration officers discovered his name on a stop list.

Police said Cypriot authorities had received a so-called Red Notice from Interpol on Saturday that Mr Metsos was wanted.

During proceedings in a Larnaca district court later yesterday, police identified Mr Metsos as a Canadian and said he was holding a US passport.

Asked later for details, police spokesman Michalis Katsounotos said Mr Metsos was carrying a Canadian passport. When asked about the supposed US passport, he declined to answer.

Mr Metsos was released on €26,500 bail to await extradition, Mr Katsounotos said.

Police told the court that Mr Metsos was wanted in the United States for spying on behalf of Russia and for laundering $40,000 (€32,800).

Defence lawyer Michalis Papathanasiou objected to him being held in custody for 30 days until his extradition papers arrive.

The court allowed Mr Metsos to go free on the condition that he visits the central Larnaca police station every day and surrender his travel documents.

His extradition hearing was scheduled for July 29.

Mr Metsos arrived in Cyprus on June 17 and was staying at a central Larnaca hotel, authorities said.

The court also heard that he had been married and has a son in Paris.