Six fire engines and around 40 firefighters were called to reports of a fire on Farringdon Lane, EC1.
An investigation found there was no fire but an occupant did make threats and barricaded himself inside.
The Police confirmed that at approximately 7.50pm, a man was arrested on suspicion of grievous bodily harm with intent and arson.
A number of neighbouring flats were evacuated as a precaution.
The Brigade was called at 1507 and the incident was over for firefighters at 2011.