Matthew George was held by police investigating historical allegations at Kerelaw School.
The 67 year old taught art at the school and secure unit, which closed in 2006 following a police probe into incidents of abuse.
He is expected to appear at Kilmarnock Sheriff Court later.
A report is to be sent to the procurator fiscal.
The school was originally run by Strathclyde Regional Council and its successor, Glasgow City Council.
A former teacher has been arrested in connection with sexual and physical abuse allegations at a former residential school in Ayrshire.