Prosecutors did not identify the foreign intelligence service and it was not immediately clear whether the analysis reached its intended recipient.
Prosecutors allege that five years after his tenure as head of the BND intelligence service ended in 2005, Hanning agreed with a former BND office manager to receive confidential intelligence information in exchange for payment.
The office manager, identified as Manfred D. in line with privacy rules, was also arrested on Tuesday.
Prosecutors said D. is suspected of having supplied around 2,000 documents over the years, including classified material intended solely for internal use within the BND and senior-level intelligence briefings at the chancellery.
According to prosecutors, Hanning used classified information supplied by D. to prepare an analysis for an officer of a foreign intelligence service and for years shared political information with a representative of another foreign intelligence service.
According to information obtained by the SZ newspaper, the case does not involve Russia.
Hanning did not respond to a request for comment from Reuters. The BND declined to comment and referred to prosecutors. The chancellery declined to comment.
Police carried out arrests and searches in the states of Bavaria, North Rhine-Westphalia and Berlin on Tuesday, and both suspects were due to appear before a judge at the Federal Court of Justice, prosecutors added.
(Reporting by Friederike Heine; Editing by Linda Pasquini, Alexandra Hudson)

August Hanning, former President of the German Federal Intelligence Service (BND), arrives at the Bundestag parliament builiding to testify in front of the German Parliamentary Committee investigating the NSA spying scandal in Berlin, Germany, 02 October 2015. Police have arrested August Hanning, the former head of the BND, on suspicion of espionage, the Federal Prosecutor's Office announced on 06 October 2026. EPA/MICHAEL KAPPELER GERMANY OUT
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