Three people have been arrested in Spain suspected of being linked to the kidnapping of five-year-old Sahil Saeed, according to reports.

A Spanish newspaper said two Pakistanis and a Romanian woman were arrested in the town of Constanti, near the north-eastern city of Tarragona.

The Diari de Tarragona quoted neighbours as saying police had discovered a large sum of money in the flat where the arrests took place.

It said neighbours also claimed to have overheard police officers saying they had recovered most of the ransom cash.

The newspaper said three people were believed to have travelled to an unnamed city in Europe to pick up the ransom money.

Reports said two of those arrested are believed to work in the local justice department. The three suspects are expected to appear in court later this week.

But the reports have yet to be confirmed by police in Barcelona. The Foreign and Commonwealth Office said it could not comment on an on-going police investigation.

Rana Sanaulla, the Punjab law minister, said he believed a ransom demand of £100,000 has been paid. He said: “We are trying to bust this gang with the help of other counties.”