Known as "Topiary", the teen hacker was taken into custody by members of the Metropolitan Police Service's Police Central e-Crime Unit (PCeU) in the Shetland Islands.
This is the third arrest of a teen hacker in the UK in recent weeks. Ryan Cleary, 19, of Wickford, Essex, was charged last month with five offences under the Criminal Law and Computer Misuse Acts, and a 16-year-old boy from south London was arrested and bailed last week.
Police say the latest arrest was part of a pre-planned intelligence-led operation aimed at rooting out member of the two hacktivist groups that have targeted high-profile government agencies in recent months.
The international investigation has already led to nine arrests in the UK, 16 in the US and four in the Netherlands.
Police are conducting searches at the suspect's Shetland address and a residential address in Lincolnshire, where a 17-year-old was interviewed in connection with the anti-cybercrime inquiry.
The arrest is linked to the PCeU's ongoing investigation into network intrusions and distributed denial of service (DDoS) attacks against a number of international business and intelligence agencies by what is believed to be the same hacking group as part of a campaign dubbed "AntiSec".
LulzSec has claimed responsibility for attempted hacks made on the UK's Serious Organised Crime Agency (Soca), the US Senate, the CIA and The Sun newspaper.
Earlier this week, Anonymous released secret documents it claims to have stolen from the servers of an Italian cybercrime unit responsible for protecting critical national infrastructure.
This story was first published by Computer Weekly