A Birmingham City Council employee was one of three men arrested in connection with an attempted fraud involving more than £3 million, police said yesterday.

The man was one of the three men from the Redditch area arrested last Friday and Saturday, according to West Midlands Police.

The arrests followed a investigation into an attempted fraud, by West Midlands Police in conjunction with Birmingham City Council Finance.

West Midlands Police said in a statement: "On Friday 19 and Saturday January 20 2008, officers from the economic crime team arrested three men from the Redditch area.

"One of these men was an employee of Birmingham City Council."

The attempted fraud related to a figure "in excess" of £3 million, which has been recovered, police said.

The three men have been bailed to return to a police station in the West Midlands in the middle of next month.

The council employee arrested has been suspended, Birmingham City Council said.

Paul Dransfield, the council's corporate director of resources, said: "Working swiftly in partnership with West Midlands Police and the systems in place with the banking industry helped foil the attempt and prevent the loss.

The three men were described as "middle-aged".