A suspicious package was discovered in Harewood Street, near the Victoria Gate shopping centre, at about 08:40 GMT.
Nearby buildings were evacuated until Army bomb disposal experts were able to declare the item safe at about midday.
West Yorkshire Police said a 35-year-old man arrested in connection with the incident was being held in custody.
Ch Supt Paul Money said: "Clearly this caused significant disruption to people living and working in the city centre and to local businesses and we would like to thank everyone for their patience and support during this incident."
A man has been arrested in connection with a bomb hoax that led to a large area of Leeds city centre being cordoned off.