Japanese police named the men as Mark Morris, 40, Stephen Rimmer, 43, and Eamonn Payne, 34.

British police sources said the accused came respectively from Manchester, Burnley and Tipton.

It is understood they were arrested on Wednesday afternoon for allegedly using counterfeit 50 US dollar bills.

They are alleged to have handed them to an employee in a restaurant bar the previous evening.

They are due to be brought before a public prosecutor today

British Embassy spokesman

The England fans are expected to be called before a public prosecutor on Thursday for a review of their case.

A British Embassy spokesperson confirmed the arrests and said a consular official had visited them on Wednesday.

He said: "The police have notified us that three British nationals were arrested yesterday on suspicion of handling counterfeit money.

"They are due to be brought before a public prosecutor today.

"Our consular office in Sapporo visited them last night."

The development comes several days after a Briton was held in Japan on suspicion of illegally trying to sell on World Cup tickets.

The man, who identified himself as John Jones, aged 43, was arrested on Saturday outside Niigata stadium shortly before Ireland's World Cup opener against Cameroon.

Police allege he was trying to sell a ticket for $100 (£68) to a local Japanese man.