James Tomkins, 61, was arrested in by Spanish authorities over the murder of electrician Rocky Dawson, 24, in Hornchurch, in May 2006.
Mr Dawson was shot dead outside his parent’s home as he was putting his two children into his car.
Mr Tomkins is due in court in Madrid on Friday for extradition proceedings.
He was captured in the area of Puerto Banus after a planned raid on an address by armed plain-clothes officers together with uniformed police from Madrid and Malaga.
Tomkins is reported to have attempted to escape arrest by jumping out of the window, but he was tracked by air support and arrested by officers on the ground.
In 2007, Christopher Pearman, of Waltham Abbey, was jailed for life with a minimum term of 23 years after pleading guilty to murder.
Officers have long wanted to question Mr Tomkins over the murder and previously issued a reward of £20,000 for information. A motive for the killing has yet to be found"
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