The Beta and Tanjug news agencies reported the arrest of Naser Kelmendi.
Kelmendi was considered by the U.S. State Department to be "one of the most dangerous narco bosses in the Balkans."
He is expected to be extradited to Russia, which indicted him in an operation intended to break up criminal gangs, said Fahrudin Radoncic, minister of Security of Bosnia-Herzegovina.
Kelmendi is suspected of organizing the murder of Ramiz Delalic, a prominent underworld figure who was killed in Sarajevo in 2007, police said.
Authorities allege Kelmendi financed and organized shipments of heroin by bus from Turkey and Albania to Kosovo, where the drugs are shipped to Western Europe.