In a statement today the Metropolitan Police announced that the men, aged 50 and 42, were arrested after attending separate police stations in south west London by appointment.
Scotland Yard refused to name the pair, claiming in a statement that: "It would be inappropriate to discuss any further details regarding this case at this time." The Guardian claims to know the identities of the two men.
News International, which owns the News in the World, issued a statement in response to the arrests: "News International has consistently reiterated that it will not tolerate wrong-doing and is committed to acting on evidence. We continue to co-operate fully with the ongoing police investigation."
The two men remain in custody for questioning. Their arrests follow a new investigation into phone hacking by the recently formed Specialist Crime Directorate 'Operation Weeting' team.
Scotland Yard relaunched its inquiry into phone hacking at the News of the World in January after receiving "significant new information".
UPDATE: The two men were later bailed until September. View video from Channel 4 News below, which names the two arrested men as News of the World chief reporter Neville Thurlbeck and former head of news Ian Edmondson.
Edmondson was suspended by the Sunday paper in January over a "serious allegation" of phone-hacking.
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