The Independent Police Complaints Commission (IPCC) has said it will investigate the death of the musician, whose real name was David Emmanuel.
The Metropolitan Police said the force was carrying out an arrest warrant at a house in Warlingham at 0700 GMT.
Emmanuel, 48, was due to face trial at Croydon Crown Court next Monday for conspiracy to supply cocaine. His biggest hit was 1984's Police Officer.
Police Officer reached number 12, while his other singles included Cockney Translation and Schooltime Chronicle.
A Met spokesman said officers from the Serious and Organised Crime Command were carrying out an arrest warrant.
He said: "While they were at the address, an incident occurred during which a 48-year-old man died.
"Officers from Surrey Police attended the incident and it has been formally referred to the Independent Police Complaints Commission."