(Image source from: NTV)

Najib Razak, former Prime Minister of Malaysia has been arrested on Tuesday amid a probe into how billions of dollars went lacking from a state fund he founded almost a decade ago.

Authorities picked up Najib from his residence subsequently serving him with a remand order, according to sources. One of the sources said Najib was expected to be charged in court on Wednesday.

Malaysia's anti-graft agency said Najib had been apprehended, according to state news agency Bernama.

Najib has consistently denied wrongdoing in dealings with state fund 1Malaysia Development Berhad (1MDB). Since his daze loss in an election in May to current Prime Minister of Malaysia Mahathir Mohamad, Najib has been prohibited from departing the country, quizzed by the anti-graft agency and had his personal and menage houses searched as part of the 1MDB probe.

Mahathir said in an interview with a media earlier this month that embezzlement and bribery with government money were among the charges that Malaysia was looking to bring against Najib, adding they had "an almost perfect case" against him.

Founded by Najib in 2009, 1MDB is being looked into at least six countries for alleged money laundering and graft.

Civil lawsuits filed by the United States Department of Justice allege that nearly $4.5 billion was embezzled from 1MDB.

By Sowmya Sangam