The 21-year-old, who has not been identified, was arrested on the outskirts of Leeds, in Yorkshire, today.
He had been at the centre of a five-week manhunt that began on November 18 after the stabbing in Estapona, 15 miles west of Marbella, in Spain.
Victim Ulrich Perez, 19, died after being stabbed in the heart on a zebra crossing as he returned home from a supermarket.
Ulrich Perez, 19, was found stabbed in the chest on November 18 after he had reprimanded the driver of a Mercedes
He was said to have been attacked by a man in a white Mercedes he had recriminated for driving too fast.