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Starlight Childcare Centre in Winfrith was closed last Thursday (3 February) after a member of nursery staff was arrested.
The police have not confirmed whether the person arrested was male or female or their age, because this could identify them, but local press reports suggest that it was a woman.
Dorset police confirmed that the person arrested has been released on bail while their child abuse investigation team continue their enquiry.
The gender and age of the alleged victim have also not been released for legal reasons.
The management team of the nursery are co-operating with police.
Starlight Childcare has only been open four months. It was registered by Ofsted in October last year and has not yet received a full Ofsted inspection.
The nursery is registered for 25 children aged under eight and is based at Dorset Green Technology Park.
A Dorset Police spokesman said, ‘It should be emphasised that this investigation is in the preliminary stages and, at this time, no person has been convicted of any offence. This investigation will be conducted by the child abuse investigation team.
‘The primary concern of Dorset Police and its partner agencies - including social services - is the continued safety of all children who attend this nursery.’