Indonesian police have arrested a man suspected of owning the van that exploded outside a Bali nightclub last month killing more than 180 people.

The man was arrested in East Java, where he is being questioned, said East Java police chief Heru Susanto.

Police on Wednesday said they were questioning at least 10 people in connection with the Bali bombing, but no-one has formally been declared a suspect.

A man said to resemble a police sketch was arrested in Medan

Among the people arrested are two men said to resemble police sketches of men seen by several witnesses at the scene of the blasts.

However, it remains unclear whether police believe the two men were involved in the 12 October bombing.

One of the men was arrested in the North Sumatran capital of Medan on Monday after he was caught using fake identity papers, while a second man was arrested in Jakarta on Tuesday.

In addition to the people currently being questioned, nine others were questioned last week because they resembled the composite sketches of three suspects released last week by police. All were released without charges.

Click here to see the police sketches

The man suspected of owning the van used in the bombing does not resemble any of the police sketches, Antara news agency reported.

The Mitsubishi van was parked outside the packed Sari nightclub that was destroyed in the powerful blast.

Forensic evidence suggests the bombs were triggered by electronic devices or remote control, rather than being the work of suicide bombers.

Experts investigating the blast say the bombing was sophisticated and carefully planned.

About 120 detectives and intelligence officers from Australia, the US, the UK, Japan and other countries are working on the case alongside Indonesian investigators.

The regional Islamic militant group Jemaah Islamiah is suspected by some governments of being behind the bombing.

Police have detained Abu Bakar Ba'asyir, the group's alleged spiritual leader, but he has not been declared a suspect in the Bali blasts.

He is being held in connection with a series of church bombings in December 2000, and in an alleged plot to assassinate Megawati Sukarnoputri before she became president.

Mr Ba'asyir, who is in a police hospital after suffering respiratory problems and heart and stomach complications, has refused to answer anything but the most basic questions.

His lawyers have filed a wrongful arrest lawsuit against police.