The elusive fugitive who has been in hiding for months was caught in Sitio Turod, Brgy. San Felipe, San Juan, ABS-CBN News reports.
Other accounts say that Dayan was not arrested but rather surrendered, fearing for his safety following the P1 million bounty on his head offered by the Volunteers Against Crime and Corruption.
He will be presented by the Philippine National Police later today.
Last week, De Lima admitted to having a previous relationship with Dayan, also her driver-bodyguard during the time they were together when she was Justice Secretary.
Dayan went missing after an arrest warrant was issued against him following his no-show at the House probe on the alleged illegal drug trade inside the New Bilibid Prison (NBP).
During the inquiry, witnesses including high-profile convict Jaybee Sebastian claimed De Lima took drug money from the NBP through Dayan, her alleged bagman.
Meanwhile, alleged drug lord Kerwin Espinosa, who was recently arrested in Abu Dhabi and was immediately brought back to the country, also implicated De Lima, according to Senator Manny Pacquiao.
De Lima has repeatedly denied the accusations and remained mum when asked to comment on Dayan's arrest.