A man brandishing a knife was reportedly spotted on a Wirral street shortly after a van was vandalised.
Police were called after the man was spotted carrying the weapon in Mount Road in Wallasey last night.
A suspect - a 42-year-old man - was arrested in Meadow Street in nearby New Brighton shortly after police descended on the scene around 6.30pm on Tuesday.
As part of the investigation police discovered a van parked in nearby street Montpellier Crescent had been damaged.
Merseyside Police today confirmed they were linking the two incidents.
A spokeswoman told the ECHO: "We were called at just after 6.30pm last night following reports of a male with a knife.
"Patrols attended on Meadow Street and arrested a 42 year-old man on suspicion of possession of a bladed article."
She added: "Following further investigations damage was found caused to a van parked in and the man was further arrested on suspicion of causing criminal damage to a motor vehicle."
Residents described seeing police heading to the scene last night.
One said that "there were police cars and vans around 7ish" in Meadow Street.