The 34-year-old man was held by police after two men were seriously injured during what is believed to have been a targeted attack.
It happened at the junction of Call Lane and Duncan Street, close to the Corn Exchange, at around 3.20am.
The victims, aged 29 and 31, suffered serious injuries which are not thought to be life-threatening.
A police spokeswoman today said that the 34-year-old man, who was arrested on suspicion of wounding, had been released but remained under investigation.
Also in news: Popular Leeds city centre bar goes into administrationThe force is still urging any witnesses to the stabbing to come forward.
Detective Inspector Amanda Wimbles of Leeds CID, previously said: “I know this incident will have caused concern but we do believe it to be to be targeted and have increased the number of officers in the area.
“I would like to appeal to anyone who might have seen what happened and/or recorded it on their mobile phone to call police on 101 quoting log 283.”