A large chainsaw has been seized after police searched a barn located near to where the Sycamore Gap tree once stood.
Officers searched Plankey Mill farm, which was occupied by retired lumberjack Walter Renwick until recently.
The 69-year-old was said to have been arrested over the felling but has denied any involvement with the slashing of the tree on social media.
"I didn’t do it," he told The Sun.
WATCH NOW: Sycamore Gap debate after police make two arrests
The tree found next to Hadrian’s Wall in Northumberland, was chopped down last Wednesday.
It is believed that Renwick owned the land until several weeks ago when he lost a legal battle with the landowners, The Jesuits in Britain.
Northumbria Police arrested a man in his 60s on Friday along with a teenager who has been released on bail.
Renwick's daughter-in-law Lauren told The Times: "He’s in custody right now [in Newcastle police station] for something he hasn’t even done.
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The Sycamore Gap, one of the most photographed trees in the world, was chopped down overnightPA"He’s got two leaking heart valves. He’s never fit enough to get up there."
The felling of the world-famous tree sparked outrage from nature lovers across the UK.
Nature experts suggest the stump could grow some new shoots next spring but it will take decades to become a new tree.
Detectives have investigated the damage following claims that vandalism was carried out by "a professional who knew where they were going to cut" on a windy night during 83mph Storm Agnes which would possibly have disguised the sound of a chainsaw.
The felling of the world-famous tree sparked outrage from nature lovers across the UK
Jeff J Mitchell/Getty Images
Detective Chief Inspector Rebecca Fenney-Menzies, of Northumbria Police, said: "The senseless destruction of what is undoubtedly a world-renowned landmark – and a local treasure – has quite rightly resulted in an outpour shock, horror and anger throughout the North East and further afield.
"I hope this second arrest demonstrates just how seriously we’re taking this situation, and our ongoing commitment to find those responsible and bring them to justice.
"Although another arrest has been made, this investigation is still in the early stages, and we would continue to encourage any members of the public with information which may assist to get in touch."