The accused Mohammed Qureshi was arrested yesterday, they said.
The accused had allegedly murdered one Abdul Chikna in 1986 in suburban Kurla, police said adding he was arrested three years later (in 1989) and was released on bail, which he jumped.
After jumping bail, he kept shifting locations. He first went to Bareilly in Uttar Pradesh and then to Bahrain, they added.
The court had issued a non-bailable warrant against him and he was declared a "proclaimed offender".
According to police, they had received a tip-off that he would be coming to Mumbai. They kept track of Qureshi and and arrested him yesterday.