Officers were called to the scene at Erikfältsgatan in the south of the city after shots were heard by residents just after 9pm on Thursday night. One person was killed at the scene, while another who was injured was driven to hospital by a passer-by.
Local newspaper Sydsvenskan reports that the man who died had previously been shot in a dispute in a different part of the city earlier this year, and is also on a police database for links to drug trafficking.
The 22-year-old meanwhile, who is being treated for life-threatening injuries at a hospital in Malmö, has previously been remanded suspected of involvement in a murder as well as narcotics crimes in the city, Sydsvenskan added.
Police did not comment on whether the two victims were previously known to them, but on Friday morning said they had arrested a 28-year-old man suspected of murder and attempted murder.
Their theory is that the men were shot while in or next to the car in which the injured man was later driven to hospital.
There have been a number of high-profile shootings in the southern Swedish city during 2017. In February, then Interior Minister Anders Ygeman said that “all resources” need to be mobilized to stop gang crime there.
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