The interior ministry said Qandil was caught in a mountainous area with smugglers trying to flee to Sudan.
Qandil was sentenced to one year in prison while in office for not carrying out a court ruling to renationalise a company that was privatised in 1996, the BBC reports.
According to the report, a Cairo appeals court upheld the sentence in September, two months after the military overthrew Morsi.
Qandil, who became Egypt's youngest prime minister since 1954 in August 2012, is not a member of the Brotherhood or any other Islamist political organisation, the report added.
--ANI (Posted on 25-12-2013)