The male councillor was arrested at their home earlier this month after allegedly raping a woman.
They have been bailed by police, and continue to serve as an elected councillor in the borough.
A spokesperson for GMP said: “A man was arrested on suspicion of rape and has been released on bail whilst enquiries continue.”
When contacted by the Local Democracy Reporting Service a spokesperson for Oldham council said the authority could not comment on a ‘live police investigation’.
The political party the councillor is a member of declined to comment when contacted about the arrest.
Under national legislation, local councils can only suspend or disqualify councillors if they have been convicted.
