The accused, Jitendra Swain (21), was arrested from Palasa in Andhra Pradesh by a police team from Aska yesterday, Baleswara Gidhi, inspector in charge of Aska police station, said.
A sword, which was allegedly used to kill the liquor trader Ganesh Bisoi (45) on August 25, was also seized from Swain, the IIC said.
Swain had earlier been arrested in Bhubaneswar on April 19 in a case of exchange of fire with police outside a hotel at Unit IV.
With Swain's arrest, the police has so far arrested four persons in the Bisoi murder case.
At least four more persons were involved in the murder, the police said.