The incident led to part of the city centre being cordoned off in September last year after reports of a suspicious object under a car parked on Bank Plain.
Police confirmed that the man, aged in his 50s, was arrested on 19 December. He was later questioned and released on bail.
Two other men, one in his 30s and another in his 50s have also been released on bail, with all three due to return on 10 March as investigations continue.
The vehicle belongs to Norwich-based businessman Besnik Ademaj, who said the discovery left him feeling frightened.
An Army explosive ordnance disposal team was deployed to assess the object. It was later identified as a tracking device.
Following the discovery, the road remained closed until the following day while investigations and safety checks were completed.
Norfolk Police said enquiries into the circumstances surrounding the device are ongoing.
