Citing an unidentified Royal Mail source, The Sun tabloid said the 60-year-old man was seen burying items destined for the monarch in the grounds of the Queen's Sandringham home in eastern England.
"A 60-year-old man was arrested on suspicion of intending to delay mail contrary to the Postal Services Act," a local police spokeswoman was quoted as saying by the paper.
According to The Sun, a Sandringham gamekeeper noticed a van parked in woodland that surrounded the residence, and alerted police, who set up a surveillance operation.
A spokesman for Royal Mail told the tabloid that the company had "zero tolerance" for dishonesty of that kind.
"We will always seek to prosecute the tiny minority of people who abuse their position of trust."
The man was apparently questioned by police officers before being released on bail, and has been suspended by Royal Mail.
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