A 22-year-old man charged over the fatal shooting of Melbourne underworld figure Gavin "Capable" Preston will be extradited to Melbourne.
Jaeden Tito was arrested without incident during an early morning raid at a home in Sydney's south-west this morning.
Victoria Police Detective Superintendent Janet Stevenson said the arrest marked a "significant" step forward in the investigation.
LIVE UPDATES: Australia sending more military forces to Middle East
Preston was at a cafe in Keilor with Abbas "AJ" Maghnie, the son of late crime boss Nabil Maghnie, when two men dressed in black fired multiple shots at the pair about 10.20am on September 9.
Preston died at the scene while Maghnie was hit in the stomach and taken to hospital with serious injuries.
Nobody else was wounded, though other patrons were in the area at the time.
Police said the attack was believed to be targeted.
Investigators executed warrants from 6am today at residential properties in Bradbury, Yagoona and Campbelltown, in Sydney's south-west.
The 22-year-old Bradbury man was charged later this morning.
His extradition to Victoria is expected to take place tomorrow.
He will face the prospect of additional charges when he comes into Victoria Police custody.
"This is a significant arrest and an important step forward," Superintendent Janet Stevenson of Victoria Police said.
But she said the investigation was "far from over".
The motive behind the shooting remained unknown at this point, Stevenson said, but it is not believed to be linked to a recent series of arson attacks on tobacco stores in Melbourne.
She thanked the public and NSW Police for their assistance with the "challenging" investigation.
Preston's family has been notified about the arrest.