The 48-year-old was held after three sets of parents noticed him taking pictures of youngsters. Police said they found a number of photos of children aged eight to 15 on his camera.

He was arrested by officers from the Maritime Police on the Marinotel beach in the popular resort of Vilamoura at around 3pm on Thursday.

Popular destination: The man was arrested on Marinotel beach in the resort of Vilamoura for taking a number of photos of children aged between eight and 15

A new lead? The arrest was made around 50 miles east of where Madeleine McCann disappeared in 2007

The beach is around 50 miles east of Praia da Luz, the seaside village where  Madeleine McCann disappeared in May 2007.

Commander Marques Ferreira said: 'A 48-year-old Englishman was seen  photographing children on the beach at Marinotel in Vilamoura and was arrested by the Maritime Police.

'We were able to verify the existence of many photographs of children aged  between eight and 15.'

A police source said witnesses claimed 'the man pointed his camera several  times at children who were playing in the sand by the water'.

A Portuguese holidaymaker told newspaper Diario de Noticias: 'When the police arrived on the beach, they were able to see the man still taking photos.'

The suspect, who has not been named, was due to appear at a court in the nearby  town of Loule this morning.

Police made him an 'arguido' or formal suspect on Thursday evening  before releasing him on bail.