A Muslim woman was among those being held after authorities said she accidentally bumped into a young monk in the street on Tuesday sparking rioting in the small town of Oakkan, around 100 kilometres north of Yangon.
Myanmar is in the grip of acute religious tension after a wave of unrest in March that saw monks and Buddhist mobs attack Muslim areas in violence that spread towards the country's main city.
"A 29 year old man died of his injuries and nine others were also hurt during yesterday's violence," he told AFP, adding that calm had been restored.
He said 18 people were arrested over their involvement in the unrest and Win Win Sein, the woman who had knocked into the novice monk, was also being held, although he did not give a reason for her detention.
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Terrified villagers of both faiths said police were not there to protect them when a crowd attacked a local mosque yesterday evening in Mie Laung Sakhan village, near Oakkan.
The mosque was seriously damaged and around 10 homes burned, according to an AFP journalist at the scene.
"Even we were threatened to be killed. We are also scared. We need security urgently," Than Soe, a Buddhist, told AFP.
A heavy security presence was visible this morning in Oakkan, where some 30 shops in the market had been destroyed and another mosque damaged.
President Thein Sein, who was criticised for waiting days to speak out during the last round of violence, is set to address the nation tomorrow morning, state media reported late today.