He was identified as Liyaqat Hussain of 156 Territorial Army (TA), an Army officer said. Hussain was disembodied from Army in year 2011, the officer added.
"A company of Rashtriya Rifles deployed in Hamirpur apprehended an overground worker yesterday and handed him over to Hamirpur Police Station," a defence spokesman said.
From him, Army claimed to have recovered a wireless transmitter set.
Army, which questioned him before handing him over to police, suspects that he had been guiding firing and shelling from across the border.
He is being subjected to thorough interrogation.
Jammu region has been witnessing heavy firing and shelling from the Pakistani side over the last several weeks, resulting in a number of casualties and fear among the locals living in the border areas.
External Affairs Ministry yesterday summoned Pakistan's High Commissioner Abdul Basit in New Delhi to lodge a strong protest over continuous firing and shelling.