FORMER Dragons Den star Doug Richard has confirmed he is stepping aside as Teesside University's next Chancellor for personal reasons - after it emerged he has been arrested on suspicion of raping a girl.

The millionaire business guru was due to be installed in the ceremonial post at the University in March but it was confirmed this will not now go ahead "for personal reasons".

The Sunday Mirror reported today (Sunday, January 18) that the 56-year-old entrepreneur has been interviewed by City of London police before being released on bail.

In a statement to the newspaper, issued by his lawyers, Mr Richard, an advisor to Prime Minister David Cameron, strongly denies the allegations.

A statement from Teesside University last night (Saturday, January 18) said: "The University can confirm that it has been notified that Mr Doug Richard has stepped aside as Chancellor-designate for personal reasons.

"Mr Richard's scheduled installation in March will not go ahead. Our current Chancellor, Lord Sawyer of Darlington, has agreed to remain in post for the foreseeable future until a successor is appointed.

"The role of Chancellor is a ceremonial position only with no executive or operational responsibilities."

A City of London Police spokesman said: "City of London Police detectives arrested a 56-year-old man on January 5, 2015, on suspicion of inciting a child to engage in sexual activity, sexual activity with a child, meeting a child following sexual grooming and rape of a girl under the age of consent.

"He was bailed on January 6 until March 2015."

Mr Richard's statement to the Sunday Mirror said: "I absolutely deny the allegations made about me. It would be inappropriate to comment further given that the police are at a very early stage of their investigation.

The married father appeared on BBC2 show Dragon's Den alongside Duncan Bannatyne, Theo Paphitis and Peter Jones, and was one of the original four "dragons".