The man has been linked by police to the fatal stabbing of a 37-year old man outside the front door of his apartment block on a December night in 1999.
Witnesses told police that they saw the victim arguing with another man. During the argument the second man pulled out a knife and stabbed the 37-year old.
The 29-year old was arrested on Friday morning, after a warrant had been put out several days earlier.
“His name has figured in the investigation for some time,” said Eiler Augustsson of Stockholm police.
“We have found reason to take a closer look at him,” he added.
Augustsson refused to give details as to why the 29-year old was a suspect.
The man, who denies the accusations, has previous convictions for violent crimes.