The 20-year-old is suspected of killing a man who was stabbed multiple times during violence in the Bartley Green area of the city on Friday morning.
The man was detained at a shared house in Warwick Road, Tyseley, at 2.10am on Saturday in an operation involving armed police.
He remained in custody on suspicion of murder on Saturday afternoon.
The victim, aged 51, was pronounced dead at the scene in Grazebook Croft after an altercation at around 11.20am.
Detective Inspector Jim Mahon, from the homicide unit at West Midlands Police, said: “We’re working hard to understand exactly what happened and to get justice for the victim’s family.
“We believe there was some kind of altercation or argument between the two men in the build-up to the murder.
“We’re still appealing for information, speaking to witnesses and reviewing CCTV.”
The scene of the murder remained sealed off on Saturday morning while officers continued forensic examination.
Anyone with information is asked to speak to an officer at the scene or message police via live chat at west-midlands.police.uk. Quote reference number 1483-110322.
Alternatively call Crimestoppers on 0800 555 111.