Six men suspected of raising funds for terror groups have been arrested in Sussex.

All are North African and in their mid 20s. Two are from Eastbourne, two from Hastings and two from London.

They were arrested at addresses in Eastbourne and Hastings in a series of raids by Sussex Police.

The suspects were being held under the Terrorism Act in separate police custody centres in Sussex.

Police are believed to be investigating if there are links between the suspects and al Qaida.

The operation is not connected with the arrest of a suspected al Qaida operative and explosives find in Gloucester but sources said it was a major breakthrough in the hunt for those financing terror groups.

The Sussex suspects were being questioned in connection with what police termed "large-scale cheque and credit card fraud".

The first man was arrested on Tuesday night and five others were picked up on Thursday evening and yesterday morning.

They were held under Section 17 of the Act, which relates to "arranging funds or property for the purposes of terrorism."

Scenes-of-crime officers and police yesterday searched a first-floor flat in Pevensey Road, Eastbourne.

Items were seized but they did not include explosives.

Assistant Chief Constable Nigel Yeo said: "At this stage there is no connection with the arrests that have been made under the Terrorism Act elsewhere in the country.

"This is a Sussex Police operation but we have been working closely with officers from the Metropolitan Police Service's anti-terrorist branch."

The Eastbourne address is believed to be the headquarters of the suspected cheque-fraud operation.

Police obtained a warrant to search the address on Tuesday night.

Police vehicles have been in the street every day since.

Shocked neighbours said they had never seen anything quite like it.

One said: "I've asked officers there but they won't say anything. It's very hush-hush."

Under the Terrorism Act police can hold the suspects for up to seven days and the suspects were not expected to be charged this weekend.

The suspected al Qaida operative arrested in Gloucester was still being questioned by police last night.

Scotland Yard said the "relatively small amount" of explosives had been removed safely from the house where the 24-year-old suspect was living.

Home Secretary David Blunkett said the Gloucester man posed "a very real threat to the life and liberty of our country".

In a separate operation, a 39-year-old Manchester man was arrested on Thursday on suspicion of "involvement in the commission, preparation or instigation of acts of terrorism".

Britain's state of terrorist alert has been raised to its second highest level.