Officers from Strike Force Tuno II arrested the 30-year-old at a home in Castle Hill at 7.15am.

He was taken to Castle Hill Police Station where he was charged with detain for advantage causing injury and break and enter felony (circumstances of special aggravation).

He was refused bail and is expected to appear in the Central Local Court later today.

The arrest was the fifth in relation to the murder of 52-year-old Falconer, a convicted drug dealer.

Fishermen discovered his dismembered remains in the Hastings River, on the state's mid-north coast, on November 26, 2001.

They were allegedly wrapped in wire mesh and weighted down with rocks.

Strike Force Tuno II is a State Crime Command Homicide Squad-led investigation into seven murders, three suspected murders and two attempted murders from 1993 to 2008 in NSW and Queensland.