Berlin police and a prosecutor confirmed Luka Rocco Magnotta, 29, was arrested at an Internet cafe, the German newspaper Bild reported.
Magnotta, the target of an international manhunt, is suspected of killing Jun Lin, a 33-year-old Concordia University student, last week in Montreal, dismembering him and mailing body parts to political parties in Canada.
Police say Magnotta cut off the limbs of his victim and mailed a foot to Conservative Party headquarters and a hand to the Liberals.
The foot had been partially opened by a Tory staff member; the hand was later intercepted at a Canada Post facility in Ottawa.
CBC News has reported an accusation of publishing obscenity appears to be related to a video posted online believed to be footage of Magnotta killing and dismembering the victim.
Interpol had posted a photo and information about Magnotta on its Web site.
The British newspaper The Sun reported Magnotta had apparently been seen traveling on a bus from France to Berlin Sunday.
The Sun said reports from Berlin indicated an Internet cafe owner there recognized Magnotta and alerted police.
Magnotta grew up in the Toronto suburb Scarborough under the birth name Eric Clinton Newman and later lived in Lindsay, Ontario, CBC News said.