The 39-year-old was detained as part of a joint investigation by Israeli authorities and the FBI.
Israeli media said the man
taken into custody was a former contestant on a popular singing contest on
Israeli television.
Madonna said she was
grateful to anyone who helped in the arrest.
"Like any citizen, I
have the right to privacy," she said.
"This invasion into my
life - creatively, professionally and personally remains a deeply devastating
and hurtful experience, as it must be for all artists who are victims of this
type of crime."
In December, unfinished
tracks were leaked before the release of the singer's Rebel Heart album.
Israeli private
investigator Asher Wizman said Madonna's team contacted his company several
weeks ago to look into the matter after rumours of an Israeli connection to the
leak.
Madonna, a devotee of
Kabbalah, or Jewish mysticism, has visited Israel several times and chose Tel
Aviv to kick off her 2012 world tour.
Mr Wizman said: "Our
investigator found her computers, at home and at a studio, were broken into
from a computer in Israel.
"We tracked down the
computer, and the man behind it. "After gathering
enough evidence, we turned to the police and he was arrested."
Police say the arrested man
is suspected of computer hacking, copyright violation and fraudulent receipt of
goods.
The FBI said: "This
case highlights the international scope of online criminal activity and the
need for close co-operation between nations as we collectively identify and
bring to justice those who pose a threat in cyberspace."
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