MADRID, Jan 4 (Reuters) - Valencia midfielder Manuel Fernandes was released on Friday after spending the night in police custody following an incident at a local discotheque

Fernandes's team mate and fellow Portugal international Miguel told reporters after training that the two players had been involved in the incident after being falsely accused of stealing a watch.

Miguel said 21-year-old Fernandes had been taken to the police station for questioning, but that he had not joined him because he refused to leave the discotheque unless accompanied by a lawyer.

Valencia coach Ronald Koeman said he had decided to leave Fernandes out of the squad for Sunday's match at home to city rivals Levante.

'It is the first measure that I've had to take and now I will talk to the club about the matter,' Koeman told a news conference on Friday.

'There are certain rules that have to be followed at the club and if they aren't then it is a problem for the player, but I don't want to say anymore until I talk it over with the club.'

Miguel is unavailable because of a thigh strain.

Valencia have been plagued by problems this season with Koeman recently making the controversial decision to sideline former captain David Albelda, goalkeeper Santiago Canizares and winger Miguel Angel Angulo for the rest of the season following a poor run of results.