The 56 year old was detained in connection which the blaze which was discovered at Trinity United Reform Church at around 8.25pm.
Detective Inspector Jane Fairlamb said: "A full investigation into the cause of the fire is under way and we are now appealing for anyone who saw anyone acting suspiciously in the area to get in touch.
"If you know who is responsible then we need to hear from you."
Having to keep area around Trinity Church closed due to risk of falling masonry. Follow @northumbriapol for further updates. pic.twitter.com/RMFY1U7vWA
— Andy Huddleston (@AndyHuddleston3) May 7, 2017
Roads were closed and local residents were taken to an refuge centre as emergency services worked to bring the flames under control.
Northumbria Police said they were treating what happened as suspicious and urged anyone with information to come forward and ring 101.
Speaking yesterday, Detective Inspector Jane Fairlamb added: "We want to thank all those affected for their patience whilst we dealt with the incident and also thank everyone who supported the emergency services who responded to the incident last night."