The girl was allegedly abducted by a man on Warne Avenue in Droylsden at around 4pm on Wednesday.
She was reunited with her family after finding her way back to a nearby park, but parents in the area were warned to be "extra vigilant".
After the arrest, police say the 23-year-old remains in custody for questioning.
The girl was allegedly abducted on Droylsden's Warne Avenue
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It comes after police released CCTV images of a man they wanted to track down, saying he had been "hanging around" the area.
A 35-year-old man was arrested on Wednesday but released without further action.
People with information have been urged to call police on 0161 856 9262.