Armed police were called to a house in Burnley in the early hours of this morning after receiving reports that a man was holding two people hostage.
Officers were called at around 2am to Prairie Crescent and following negotiations the man left the address and was arrested.
Police believed the man may have been in possession of an axe.
A spokesman for Lancashire Police said: "It is not thought the man and woman being held at the address suffered any injuries, though they were assessed by the ambulance service as a precaution.
"Our inquiries are ongoing, however at this time we believe the parties are known to each other and there is no wider threat to the public. "
A 39-year-old man from Burnley, arrested on suspicion of assault, GBH and making threats to kill, remains in police custody.
The assault arrest relates to a separate incident which took place in October, 2018.