The alleged assault and false imprisonment took place at an address in Cheapside, with the victim reporting on the incident on May 29.
A man, who suffered head and facial injuries, was attacked and held against his will for two days before he managed to escape, said Nottinghamshire Police.
A 35-year-old man was detained in suspicion of causing grievous bodily harm and false imprisonment as police continue with their investigation.
A spokesperson for Nottinghamshire Police confirmed that he has been released on conditional bail while an investigation into the incident continues.
Detective Sergeant Matt Dumbrell, of Nottinghamshire Police, said: “Our enquiries are ongoing into these serious allegations.
"This was a self-contained incident and we are not looking for anyone else in connection with it.
"We continue to work hard to establish the full circumstances surrounding this reported incident.”