"Several people heard him say there were explosives on the train," police spokeswoman Cindy Schönström-Larsson told the TT news agency.
The man was arrested shortly after police arrived on the scene around 10.30am, according to the paper.
While nothing suspicious was found on the man, sniffer dogs and a bomb detection team have been dispatched to examine the station to ascertain whether or not there are in fact any explosives on the train.
"They have found an object that they can't identify," Schönström-Larsson told the Expressen newspaper.
However, it was later revealed that the item belonged to one of the passengers who had been evacuated.
According to Schönström-Larsson, the suspect who has been arrested appears to be mentally unstable.
After being interrogated, he will be taken to a psychiatric care facility, she added.
The man was arrested on the train after witnesses alerted police to the bomb threat.
Local public transit operator Skånetrafiken is rerouting trains via Svågertorp as police investigate carry out their investigation of Hyllie station.
Additional buses have been put into service between Hyllie and Svågertorp to transport passengers stranded at Hyllie station due to the threat..
While Skånetrafiken spokeswoman Ulrika Mebius hopes rail service will return to normal around 2pm, she added that it remains "uncertain" exactly when service will resume.