The German federal police office and Dresden prosecutors said in a joint statement that the 39-year-old suspect was detained on the night of 19-20 June on a European arrest warrant issued by the Belgian authorities.
He is accused "of abetting a terrorist organisation linked to the terror attacks, including on the Bataclan concert hall, on 13 November 2015 in Paris".
The suspect, who was not named, attracted the attention of Saxony-Anhalt law enforcement over involvement in an arms smuggling case. According to the Dresden prosecution, the man is already wanted in Belgium under a European arrest warrant over involvement in terrorist activities and the attacks that struck Paris in 2015.
The suspect is currently in detention and the state prosecution of Saxony-Anhalt is working on his extradition to Belgium.
Paris and its suburb of Saint-Denis suffered several coordinated attacks on 13 November 2015. Several mass shootings and bombings at the Stade de France stadium, cafes, restaurants and the Bataclan concert hall claimed the lives of 130 people and injured over 400 others.