The former business partner of missing Perth millionaire Craig Puddy has been released without charge after being questioned by police.

Cameron Mansell was questioned for several hours on Friday after being taken into police custody.

The 38-year-old's burnt-out four-wheel drive Jeep Cherokee was found in a pine plantation in the city's north on Thursday, after police said blood had been found in Mr Puddy's luxury Mount Pleasant home and a wheelie bin from the property was missing.

Mr Mansell managed the Basement on Broadway pub in the city's west, an enterprise which was part owned by Mr Puddy as well as former Wallaby Scott Fava.

The 45-year-old Mr Puddy was last seen on Monday, the same day he resigned as a director of an industrial machinery company.

Major crime squad detectives on Friday said they had found Mr Mansell at a location in the Perth CBD and he was assisting police with their inquiries.

ABC Radio reported that police swooped on a Perth hotel on Friday morning and took him away for questioning.

Mr Mansell was interviewed for several hours before being released without charge at about 11pm (WST), police said in a brief statement on Saturday.

Major crime squad detectives are continuing to vigorously investigate Mr Puddy's disappearance, the statement said.

Police on Thursday scoured Mr Puddy's five-bedroom, two-storey home in the affluent suburb of Mount Pleasant for further clues to his whereabouts.

Water police divers were also called in to trawl the Canning River about 100m downhill from his home.

Mr Puddy had been planning to move to Sydney, but when removalists turned up on Tuesday he was not at the house, which has been on the market for $3.2 million.

Police have asked anyone with information to call Crime Stoppers on 1800 333 000.