Thomas Markle has been accused of cutting off his electronic monitoring device.
A judge imposed the bail condition after Mr Markle was charged with child sexual abuse material offences.
Authorities say Mr Markle is in custody, awaiting a federal court hearing.
The estranged father of Meghan, the Duchess of Sussex, has allegedly cut an electronic monitoring device off his ankle just days after being arrested over child sexual abuse material.
US prosecutor Bill Essayli said the 82-year-old was in custody awaiting a hearing in federal court in Tampa, Florida.
Mr Essayli said Mr Markle was arrested shortly after he cut off his ankle bracelet in the early hours of Tuesday morning, local time.
Mr Markle was arrested on Friday, local time, after US authorities charged him with possessing child sexual abuse material, alleging he had pictures of himself with prepubescent girls.
Mr Essayli said authorities seized about 78 items, including slides, film negatives, and books that contained suspected child sexual abuse images, in storage in the Los Angeles area.
Hours later, a judge allowed Mr Markle to be released on the condition that he be electronically monitored, which typically means wearing an ankle tether.
Mr Markle's daughter, Meghan, the Duchess of Sussex married Prince Harry at Windsor Castle in 2018, and the couple have two children.