Police officers in Northern Ireland investigating the hijacking of a car used in a security alert in the Waterside area of Derry last month have arrested a 28-year-old man.

He was arrested in the Claudy area of Co Down this morning under the Terrorism Act and is being questioned at Musgrave Police Station in Belfast city centre.

A delivery driver was forced at gunpoint to drive his car containing what he had been told was a bomb to Waterside Police Station.

The PSNI initially described it as an "elaborate hoax", but later said it was a viable explosive device.

The man has also been arrested on suspicion of kidnapping and possession of a firearm in connection with an incident that is believed to have occurred in Claudy on 10 November.

It is understood a man was threatened with a firearm and taken from premises on Main Street in the village by two masked men on that date.