The 12 Israelis arrested over the alleged attack, which was said to have taken place on 17 July in Ayia Napa, have all been released.
Reuters and AFP said the 19-year-old woman was arrested on Sunday.
The Foreign Office said it was supporting a British woman and her family following her arrest in Cyprus.
She will appear in court on Monday, police spokesman Christos Andreou told AFP.
The British woman contacted police in the early hours of 17 July saying she had been assaulted in a hotel in the holiday resort. Later that day police arrested 12 males, who were remanded in custody.
The group, aged from 15 to 20, denied the claim.
Five of the group were released on Thursday and the remaining seven were sent home on Sunday.
The town of Ayia Napa is a resort popular with young people.
More than 1.3m British tourists visited Cyprus last year, according to Cyprus's statistical service.
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