The Careless Whisper hitmaker was detained on Friday (19Sep08) in the Hampstead Heath area of north London, close to his home in Highgate.
The singer was questioned at a nearby police station and later released with a caution for possessing class A and class C drugs - cocaine and cannabis.
A spokesman for the Metropolitan Police says, "We can confirm a 45-year-old man was arrested in the Hampstead heath area on the 19th September on suspicion of possessing drugs.
"He was taken to a North London police station where he received a caution and was released with no further action.
"The caution was for the possession of class A and class C drugs, cocaine and cannabis."
Michael was previously arrested in October 2006 in London, when cops found him slumped over the wheel of his car. And last May (07) he was handed a two-year driving ban after pleading guilty to driving while unfit through drugs.
Source: WENN