Luka Rocco Magnotta, 29, was reportedly picked up in a cybercafe in Berlin's Neukoelln district.
An Interpol notice says Mr Magnotta is suspected of killing Jun Lin, a 33-year-old Chinese student, in Montreal. Body parts were also posted to political parties in Canada.
He faces charges in Canada of murder and threatening Canadian politicians.
Before his arrest French police said Mr Magnotta had flown to Paris from Montreal.
Investigators say a video posted online, in which a man apparently uses an ice pick to kill another man, is believed to show Jun Lin's murder.
The suspect had reportedly worked as a bisexual porn actor and model.
Multiple accounts of how Mr Magnotta was arrested emerged along with news of his detention.
The German news website Spiegel reported that Mr Magnotta was first spotted by a passenger travelling on a bus from France to Berlin.
The internet cafe owner in Berlin then recognised the suspect and alerted police.
He told the Associated Press that Mr Magnotta came into the cafe to read news reports about himself.
"A colleague recognised him from his photo, because he'd just read the newspaper," he said.
German police Chief Superintendent Stefan Riedlich told CBC News in Canada that Mr Magnotta "was arrested alone" at 14:00 local time on Monday (12:00 GMT).
"There was no struggle," he said.
He will appear before a judge in Germany on Tuesday, CBC reports.
Earlier, police in Paris found items belonging to Mr Magnotta in a hotel room - including pornographic magazines and airline sick bags, French media say.
The hotel is in Bagnolet, an eastern suburb of Paris near the peripherique ring road.
Multiple accounts of how Mr Magnotta was arrested emerged along with news of his detention.
The German news website Spiegel reported that Mr Magnotta was first spotted by a passenger travelling on a bus from France to Berlin.
The internet cafe owner in Berlin then recognised the suspect and alerted police.
He told the Associated Press that Mr Magnotta came into the cafe to read news reports about himself.
"A colleague recognised him from his photo, because he'd just read the newspaper," he said.
German police Chief Superintendent Stefan Riedlich told CBC News in Canada that Mr Magnotta "was arrested alone" at 14:00 local time on Monday (12:00 GMT).
"There was no struggle," he said.
He will appear before a judge in Germany on Tuesday, CBC reports.
Earlier, police in Paris found items belonging to Mr Magnotta in a hotel room - including pornographic magazines and airline sick bags, French media say.
The hotel is in Bagnolet, an eastern suburb of Paris near the peripherique ring road.
Authorities believe the foot and hand sent through the post also belonged to Jun Lin.
The foot was sent to the HQ of Prime Minister Stephen Harper's Conservative Party in Ottawa on 29 May. The hand was found later that day in a parcel addressed to the office of the Liberal Party in Canada's capital.
Police believe Lin was killed on 24 or 25 May, with the video of the murder posted online on 25 May.
Mr Magnotta left the city on an international flight the next day.
The crime scene inside his flat in Montreal was reported to be among the worst city police had ever seen, including a bloody mattress and pools of blood on the floor and in the refrigerator.
Source: BBC News
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