The detention was part of a corruption investigation, alleging his involvement in receiving illegal commissions during negotiations for staging the Spanish Super Cup competition in Saudi Arabia.
Rubiales, who denies any wrongdoing, was taken into custody for questioning. However, he was released shortly thereafter, sparking speculation about the unfolding legal proceedings.
The investigation has cast a shadow over Rubiales' tenure as president, with prosecutors seeking a two-and-a-half-year jail term. The allegations have further tarnished his reputation, coming amidst separate legal proceedings regarding allegations of sexual assault.
Spanish public broadcaster RTVE reported that Mr Rubiales could appear in court on Thursday.
This development follows a series of events, including police searches of Rubiales' home and the football federation headquarters, as well as several arrests made in connection with the case.
The scandal has intensified scrutiny on Rubiales, who was previously embroiled in controversy over allegations of sexual assault involving player Jenni Hermoso after last summer's World Cup final. Rubiales resigned from his position amid public outcry, vehemently denying any wrongdoing.
Courtesy Media Group: IANS