Paolo Gabriele, 40, was caught red-handed — with secret Vatican documents — when he arrived for work at the papal apartments near St. Peter's Basilica, Italian media reported.

His arrest comes a month after Benedict appointed a special commission of three senior cardinals to find who has been leaking Holy See secrets — including letters to the pope about alleged Vatican corruption and power struggles.

Benedict was described as shocked and saddened by the scandal, dubbed "Vatileaks."

Gabriele, known as Paoletto (Little Paul), has been the lay person closest to Benedict for six years...

[The leaks included:]

* The deputy governor of Vatican City was transferred to Washington because he exposed shady contracts that cost the Vatican millions of dollars.

* The editor of the official Vatican newspaper leaked false documents claiming the editor of another Catholic newspaper had a gay affair.

* A top Italian TV talk show host paid more than $10,000 to have a private audience with Pope Benedict XVI.