The broadsheet claimed sources 'close to the investigation' had revealed that Fastow would be allowed to turn himself into the FBI rather than be arrested in public.

Fastow is accused of being behind the creation of the Enron subsidiaries that hid the huge debts of the energy company. He has made no public comment since being fired in October 2001, except to claim his innocence of any illegal behaviour.

His arrest follows a guilty plea entered by Michael Kopper, a former managing director of Enron Global Finance last month, which implicated Fastow in fraud at the collapsed energy trader.

Kopper pled guilty to wire fraud and conspiracy to commit money-laundering after signing a co-operation agreement with federal prosecutors.