Twenty one year old Ben Nesbit, from Southport, Merseyside, suffered fatal knife wounds during an altercation with another man in the early hours of Thursday October 1st, outside a property in Ciudad Quesada in the province of Alicante.
A manhunt for the alleged attacker was immediately launched, with Guardia officials asking members of the public to look out for a black BMW, with British number plate MW63 MPF, but not to approach the driver, as he could be dangerous.
Initial reports indicated that two British couples were holding a party and the dispute that caused the fatal assault occurred when the two men had been left alone together.
Once alone, the two men entered into an argument, which ended when the victim received a knife wound to the neck and the assailant fled the scene of the crime.
The injured man is reported to have staggered out onto the street outside the property but died before witnesses had a chance to save his life.
No further reports regarding the identity of the arrested man have been issued by Guardia Civil sources and the investigation continues.