The New York Times said it did not publish the story lightly.
It brings the total arrests to six men and one woman, all of whom are in custody and being questioned by police. The article did not cite a source.
British Transport Police said armed officers would start to patrol United Kingdom trains due to the increased threat of extremist attacks. And as I've said, continues at pace. "There's extensive investigations going on and activity taking place across Greater Manchester as we speak".
The bombing, which took place at the Manchester Arena indoor venue just after the end of a concert by USA pop singer Ariana Grande, was the deadliest in Britain since July 2005, when 52 people were killed in attacks on London's transport network.
Authorities said the suicide bomber, 22-year-old British-Libyan Salman Abedi, did not act alone.
Manchester police said on Wednesday they're investigating a network they think orchestrated the bombing, and the suspected perpetrator's father and brother were arrested in Tripoli.
The Czech Republic's interior minister, meanwhile, said a report by German newspaper Der Tagesspiegel claiming Abedi had travelled to Germany via Prague, wasn't correct. His family in Libya says he visited the North African nation during this past Ramadan.
If confirmed, the halt to the sharing investigative details with Britain's most important defence and security ally would underscore the level of anger in Britain at leaks to the USA media of details about the police investigation.
British police chiefs said the breaches of trust between security service partners were undermining their efforts.
The pictures emerged a day after the bomber's name was leaked to the American press against the wishes of British police. An investigation of the attack and the bomber, who died in the explosion, as well as a possible network tied to him is underway, according to The New York Times.
"We have strong and close ties with our (British) friends", he told reporters, reading from a statement.
Prime Minister Theresa May had warned the "special relationship" could be harmed by the repeated leaking of confidential details and raised her concerns with Donald Trump at a North Atlantic Treaty Organisation summit in Brussels.
Cities including Paris, Nice, Brussels, St. Petersburg, Berlin and London have suffered militant attacks in the last two years. A 23-year-old man was arrested in the south of the city yesterday.
May said the national threat level remains critical - meaning another attack may be imminent.