Alex Manuel (27) had been the subject of a police manhunt since the incident last month, when Ricky Thompson was fatally stabbed in a pub car park.
Victoria Police today confirmed that Homicide Squad detectives, with the assistance of the Special Operations Group, had arrested a man in relation to the stabbing in Chelsea Heights.
They allege that Manuel argued with Thompson in the car park of the licensed premises on June 18.
Thompson was then stabbed and died the next day in hospital.
During the manhunt for Manuel, Victoria police publicly urged his associates to give up.
"Alex Manuel is likely staying with an associate so now would be a good time to mention if he is being harboured by someone, that person risks committing a serious offence," Victoria Police said.
Manuel was arrested at a rural property at Toora, Gippsland, and charged with murdering Thompson, the Age reported.
Victoria Police say a male and a female who were also at the Toora property are assisting investigators with their inquiries.
