The 35-year-old cyclist was found by paramedics suffering serious leg injuries following a collision with a car at Bell Corner at 12.40pm.
On arrival, his condition was assessed as non life-threatening.
Police said the driver of the car failed to stop at the scene of the collision.
A Scotland Yard spokesman said: “He was arrested a short time later at a nearby address on suspicion of causing injury through dangerous driving.
“He has been taken into custody.”
Bell Corner is part of Waltham Forest council’s flagship mini-Holland scheme to encourage residents to cycle in the borough.