The 29-year-old from Liverpool was held in connection with an incident at a Glasgow nightclub in the early hours of Monday morning. He received his award at a ceremony at the Hilton hotel on Sunday night.Higdon was released without being charged about 9am - 30 minutes after he was due to attend a media conference in the Hilton to comment on his prize.
A Police Scotland spokeswoman said: "A 29-year-old man is the subject of a report to the procurator fiscal in connection with an alleged assault at a nightclub in Ingram Street in Glasgow at 1.25am today."
Higdon, who had celebrated his achievement along with his father at the dinner, was reunited with his Motherwell team-mates on Monday when he fulfilled his commitment to attend left-back Stevie Hammell's testimonial golf day.
The arrest threatened to overshadow Higdon's impressive achievement in being voted the best player in Scotland by his fellow professionals.
The Liverpudlian, who began his career at Crewe's acclaimed youth academy, has scored 27 goals so far this season.
His goal record and all-round play saw him beat Hibernian striker Leigh Griffiths, Aberdeen forward Niall McGinn and Inverness playmaker Andrew Shinnie to top a shortlist that contained no players from champions Celtic - an omission that drew an angry reaction from Hoops manager Neil Lennon.
Higdon's tally of 26 league strikes is a club post-war record for top-flight goals in a single season.
The feat saw him overtake Willie Pettigrew's previous record of 23 in 1975-76 and makes him more prolific in claret and amber than previous Fir Park greats such as Ian St John, Joe McBride, Brian McClair and Tommy Coyne.