Kizza Besigye, who heads a four-party opposition grouping and is a candidate in February's presidential vote, alleged last year that Museveni secretely sold Lake Kyoga in central in Uganda to a South African company.
"We have evidence and we are ready to prosecute that case," Police Inspector General Kale Kayihura told reporters.
Besigye will run for president in the February 18 general elections, his third attempt at leadership after losing to Museveni in the 2001 and 2006.
He was Museveni's personal doctor before falling out with the regime in 1999. Since his return from exile in 2005, he has faced several criminal charges, including rape and treason, but was exonerated in all cases.
Kayihura also warned Sunday that police would head off any opposition attempt to incite chaos in the capital after vote results are announced on February 20, saying the opposition threatened to "set Kampala on fire" if it loses next month's polls.
The statement comes after the country's election chief said last week at least nine political "militia groups" were threatening to disrupt Uganda's general elections next month, though the campaign has been relatively peaceful so far.
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