The Briton, who has been named by Spanish authorities as Marcus Eric Stewart, is believed to have been inside an Audi Q7 as it ploughed into crowds in Marbella, Spain.
Stewart can be seen wearing just a pair of shorts as he is cuffed on the sands of Puerto Banus beach.
The armed officer can be seen brandishing a pistol and ordering Stewart back to the main road.
At least six people, including a seven-week old baby, were injured after they were mowed down by the driver.
Stewart was arrested by Spanish police following the crash outside the Ocean Club as it hosted its annual champagne party over the weekend, popular with the TOWIE cast.
Witnesses claim the 4×4 struck three people before fleeing the scene.
A high-speed chase followed which culminated in the black Audi driving the wrong way down the Golden Mile dual-carriageway running between Marbella and Puerto Banus.
It hit several cars including one in which three people including a young baby were injured.
Police confirmed two Britons were initially arrested following the incident which occurred around 9pm.
The second suspect, named as fellow Brit Liam O’Neill, is not seen in the footage.
The officer, a Civil Guard, can be heard shouting “Arriba” – Spanish for “get up” – as he appears to struggle briefly with tattooed Stewart behind a tree.
Seconds later he emerges with the Stewart in front of him, pushing him with his pistol close to his back as he forces him away from the beach and up to the main road while shouting at him to hurry up.
Six people are thought to have been taken to Marbella’s Costa del Sol hospital immediately following the crash.
A 29-year-old Briton is still in hospital with a broken leg.
Marbella mayor Jose Bernal said at a press conference that Sunday night’s drama had been sparked by an altercation involving at least one of the men at the Ocean Club.
Police are still investigating whether the pedestrians were deliberately targeted.
Both men are due in court tomorrow.