He was one of four men arrested in Derry under the Terrorism Act on Tuesday in connection with her murder.
Two of the men, aged 20 and 27, were released pending reports to the Public Prosecution Service.
A 29-year-old man was released without charge.
Ms McKee, 29, was shot while observing rioting in Derry’s Creggan estate in April 2019.
The New IRA later admitted carrying out Ms McKee’s murder.
Detectives have again appealed for anyone with information to come forward.