Local government minister Jahangir Kabir Nanak said Mohammed Sohel Rana was arrested at the Indian border.
He had been in hiding since the Rana Plaza collapsed on Wednesday.
Rescuers are in a race against time to reach remaining survivors as officials prepare to bring in heavy machinery to move the wreckage.
Mr Nanak said that Mohammed Sohel Rana was arrested near the land-crossing in Benapole along the border with India's West Bengal state.
Mr Nanak made the announcement by loudspeaker at the site of the collapsed eight-storey building in the Dhaka suburb of Savar.
He said the arrest had been made by soldiers from the Rapid Action Battalion.
Rescue workers cheered and clapped at the news.
Bangladeshi TV later showed Mr Rana in handcuffs after being flown back to Dhaka by helicopter.
Source: BBC News
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