First Minister Humza Yousaf says he will not suspend Nicola Sturgeon from the SNP.
The former party leader was arrested and released without charge on Sunday as part of a police investigation into SNP finances.
Mr Yousaf told BBC Scotland he saw “no reason” to suspend a party member who has been released without charge.
Ms Sturgeon has said she is “innocent of any wrongdoing”.
Her arrest follows that of her husband and former party chief executive, Peter Murrell, and the party’s ex-treasurer Colin Beattie.
Both were also released without charge pending further investigations.
Mr Yousaf said the news of his predecessor’s arrest was “personally painful”.
He added: “I’ll not suspend Nicola’s membership. I’ll treat her in the same way I’ve treated, for example, Colin Beattie.
“Those that have been released without charge I see no reason to suspend their membership.”
Mr Beattie, SNP MSP for Midlothian North and Musselburgh, resigned as SNP treasurer following his arrest in April.
Police launched their investigation after complaints were made relating to more than £600,000 donated to the SNP by activists.
An SNP spokesman said the party was co-operating fully with the investigation.
This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version.
You can receive Breaking News on a smartphone or tablet via the BBC News App. You can also follow @BBCBreaking on Twitter to get the latest alerts.
