Moroccan police arrested the man near the town of Tetuan after local residents caught him trying to kidnap a six-year-old Spanish daily Diario Sur reported on Thursday.
Spanish police since have identified this man as Robert Edward Bill.
Bill, a convicted sex crimes offender in the UK, is wanted by Spanish police for the kidnapping of a young girl in southern Spain.
The former teacher and playground designer is suspected of dragging the girl into a car outside the court house of the southern Spanish town of Vélez-Málaga in November 2012.
The girl managed to escape by opening the car door before her captor could drive away.
After the incident, Bill's son and wife called for his capture.
His wife described him as “dangerous” and “evil” and said he should hand himself in, Spain's Olive Press newspaper reported at the time.
She said: “He has no life now and should turn himself in. Neither me or our four sons have any contact with him anymore."
Bill is also suspected of the rape of two young Moroccans in the towns of Tetuan and Chefchaouen, Spanish news agency Efe reported on Wednesday.
Bill spent six years in prison in Wales after a 2008 trial in which he was found guilty of trying to abduct a five-year-old girl.
He was also found guilty of indecently assaulting a young girl and possessing 730 indecent images of children.
His name appears on the Uk sex offenders’ register.
North Wales Police informed Spanish authorities Bill was moving to the Malaga area in August 2012.
The UK police force also helped their Spanish counterparts to investigate the attempted abduction in Vélez-Málaga.