Tulisa Contostavlos bailed after alleged drugs arrest

The 24-year-old singer had been accused by a Sunday newspaper of acting as a go-between between an undercover journalist and an alleged drug dealer. According to the report, Tulisa allegedly said “Of course I can get it for you. Half the guys I know are drug dealers.”

The paper claimed that as a result, £800-worth of cocaine changed hands in the deal at London’s Dorchester hotel.

The Metropolitan police had said its officers were “considering” the information, and on Sunday police vans were seen outside her £4m home.

Bail granted

Earlier today Scotland Yard confirmed two people were arrested. “Officers from Westminster have arrested two people – a 35-year-old man and a 24-year-old woman – on suspicion of supplying class A drugs. They are in custody at a central London police station.”

Later, police said both had been bailed until next month, adding that searches have also been carried out at two residential addresses.

35 year old musician Mike GLC, who was arrested along with Tulisa, gave a statement outside Belgravia police station, denying any wrongdoing.

“We are innocent”, he said. “We haven’t been charged.” He insisted they had been “set up” with remarks caught on camera taken out of context. “Anyone can edit or chop up things together on video”.

And he said the allegations were ruining his life. “I am not a drug dealer. I have never sold drugs in my life”.

There has been no official comment from Tulisa’s spokesperson.

The singer, who found fame with N-Dubz, was axed from her role as an X Factor judge a fortnight ago, after two series. She has a clothing range at the high streetg retailer Bank, which said it was now “considering the options”.

According to the Daily Mirror, Bank’s parent company JD said “We are monitoring the situation closely and will continue to do so as it develops”.

The possibility of losing commercial partnerships means that Tulisa could lose as much as a million pounds in the wake of the allegations. Her solo album, the Female Boss, struggled to reach 35 in the charts and was branded a flop.

Her personal life has caused controversy in the past, after a former boyfriend leaked a private sex tape onto the internet. The singer won a full apology.

So far fans have been expressing their support for the singer on social media sites, but there has been no comment yet from Tulisa herself, or her former bandmates.