The 26-year-old Ivory Coast international was stopped near Newcastle's training ground on Tuesday afternoon by Northumbria Police officers.
And Tiote's black and white Chevrolet Camaro, thought to be worth in the region of £75,000, was taken away on the back of a recovery lorry.
A Northumbria Police spokesman said: "At about 1.30pm on 12 February, a car was stopped on Benton Park Road, Newcastle, and a 26-year-old man was arrested on suspicion of fraud in relation to driving offences."
Police added that their inquiries are ongoing.
Tiote, who has only just returned from the Africa Cup of Nations, joined Newcastle from Dutch side FC Twente in 2010 for a fee of £3.5m, and the defensive midfielder has made a big impression since arriving at St James' Park.
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