The CIA contractor released from prison in Pakistan in January after shooting dead two people and paying blood money to their families has been arrested in Colorado, ABC television reported.

Raymond Davis was arrested early Saturday outside a bagel shop in the town of Highlands Ranch "after he allegedly fought with another man over a parking spot," ABC affiliate KMGH television reported.

Davis, 36, "was taken into custody on misdemeanor charges of third-degree assault and disorderly conduct. He was released after posting $1,750 bond," the network reported.

In March, some 3,000 people rallied outside Islamabad's Red Mosque against the release of Davis, a contractor with the Central Intelligence Agency who shot dead two Pakistanis in January and was charged with murder.

Davis was set free after $2 million was paid as blood money to the families of those he killed in a busy Lahore street. His release was widely condemned among the Pakistani public and media.