Gascoigne arrested in drugs swoop
Gascoigne, 43, was detained on suspicion of possessing a class A substance following a police search at a property in North Tyneside, north-east England.
The former Tottenham Hotspur and Lazio player is waiting to be sentenced in a separate incident. He was warned just days ago that he faced jail after admitting drink driving.
"A 43-year-old man was arrested on suspicion of possession of a class A drug," Northumbria Police said in a statement.
"A second man, aged 43, was later arrested on suspicion of being concerned in the supply of drugs.
"Both men are still in custody and inquiries are on going."
Gascoigne, whose personal problems including mental illness have been widely covered in the media since his retirement from the game, also played for Newcastle United, Middlesbrough and Rangers.
He famously cried after being booked in the 1990 World Cup semi-final against West Germany, a punishment which would have ruled him out of the final if England had won a match they eventually lost in a penalty shootout.