Police in the northern Norwegian city of Tromsoe said the Silver Dania was detained at the request of Latvian authorities and with the help of the Norwegian coast guard.
"The investigation will continue, but we see no reason for the ship to remain in Tromsoe. There are no findings that the ship was involved in damaging the submarine cable," Norwegian police said in a statement late on January 31.
Norwegian television station TV2 reported that the owner of the Silver Dania - the Silver Sea shipping group - denied that the ship was involved in the latest cable break in the Baltic Sea.
Sweden and Latvia are investigating a suspected sabotage of a cable connecting the two countries that occurred on January 26.
Mats Ljungqvist, the prosecutor in charge of the investigation in Sweden, said he had examined the Norwegian ship Silver Dania and ruled out any involvement in the cable break.
Swedish police also detained and boarded the Maltese-flagged cargo ship Vezhen on suspicion of sabotage.
Earlier this week, the head of Vezhen, a Bulgarian company that operates the cable, confirmed that a ship's anchor had likely hit the cable but denied any intention to sabotage it.
The Baltic Sea region is on high alert after a series of power, telecommunications and gas pipeline failures since the Russia-Ukraine conflict broke out in 2022.
The NATO military alliance has recently increased its presence in the Baltic Sea with naval destroyers, aircraft and drones.