He reportedly surrendered to Alassane Ouattara's forces after French tanks advanced on his residence.
Mr Gbagbo had been refusing to cede power to Mr Ouattara after losing November's presidential election.
France said pro-Ouattara troops had detained him, but an aide to Mr Gbagbo said it was French special forces.
Mr Gbagbo was then taken to the city's Golf Hotel, where Mr Ouattara has his headquarters.
UN peacekeepers have accused pro-Gbabgo forces of endangering the civilian population, and had asked French troops in Ivory Coast to act against the defiant leader's heavy weapons.
Ivory Coast's permanent representative to the UN, Youssoufou Bamba, said Mr Gbagbo would stand trial.
In London, UK Foreign Secretary William Hague said that if charges were brought, Mr Gbagbo should be tried in an orderly manner.
'Gbagbo has surrendered'
Forces loyal to Mr Ouattara launched an offensive from their stronghold in the north at the end of March, after months of political deadlock during which Mr Gbagbo refused to recognise his rival's election victory.
As they closed in on Mr Gbagbo's power base in Abidjan, UN and French attack helicopters targeted heavy weapons being used by his forces.
Attempts to negotiate his exit failed, and his forces appeared to be making a comeback by the end of last week, even threatening the hotel used by Mr Ouattara.
On Sunday, UN and French helicopters launched a new wave of air strikes, and on Monday French tanks were seen advancing on the residence.
The UN announced that Mr Gbagbo had surrendered to Mr Ouattara's forces.
"The United Nations mission in Cote d'Ivoire [Ivory Coast] has confirmed that former President Laurent Gbagbo has surrendered to the forces of Alassane Ouattara and is currently in their custody," UN spokesman Farhan Haq said.
Anne Ouloto, a spokeswoman for Mr Ouattara, told AFP news agency that Mr Gbagbo was at the Golf Hotel with his wife and his son Michel.
The hotel is protected by both pro-Ouattara forces and UN peacekeepers.
French denial
France's ambassador to Ivory Cost, Jean-Marc Simon, told AFP news agency: "Laurent Gbagbo was arrested by the Republican Forces of Ivory Coast and taken to the Golf Hotel."
AFP added that eyewitnesses had seen pro-Ouattara forces entering the presidential compound while French and UN armoured vehicles stood on a road leading to the complex.
However, an aide to Mr Gbagbo, Toussaint Alain, told Reuters news agency from Paris: "Gbagbo has been arrested by French special forces in his residence and has been handed over to the rebel leaders."
An unnamed French government source denied the report.
"Mr Gbagbo was arrested by Mr Ouattara's troops, that is true, but not by French special forces, who did not go into the enclosure of Mr Gbagbo's residence," the source told AFP.
Whether it was by Mr Ouattara's forces or the French is still open to question, the BBC's Mark Doyle reports from Abidjan.
According to our correspondent's sources, it was the French army who were in the lead heading towards the residence of Mr Gbagbo on Monday with a heavily armoured column.
Source: BBC
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