The suspect, Tobias Kuster, failed to return to Pöschwies prison after day release on June 23rd last year. He had been in prison since February 2014, serving a five and a half year sentence for various crimes.
Seven days later a 42-year-old was found badly injured in the Seefeld district of Zurich; he later died from his injuries.
In a statement at the time, police said they strongly suspected that Kuster, 23 at the time, was linked to the killing.
A few weeks later a 10,000 franc reward was posted for information leading to his arrest.
He was finally apprehended on January 18th after attempting to illegally buy a gun from a website that was being monitored by investigators, Zurich prosecutors said in a press conference reported by Swiss media.
He has admitted the facts, said police.
Since Kuster's arrest investigators have searched two houses in the cantons of Zurich and Jura where Kuster is believed to have stayed while on the run.
Two other people have also been arrested in connection with the case, said police.