The man, who was arrested under the Section 41 of the Terrorism Act 2000, has been taken to Belfast where he is being questioned at the serious crime custody suite.
A search of a house in Derry has also been conducted, police have said.
Ms McKee, who was 29, was observing rioting in Derry’s Creggan estate when she was shot on 18 April 2019.
One man, Paul McIntyre, 52, from Kinnego Park in Derry, has been charged with Ms McKee’s murder.
He denies the charge.Last month, detectives made a major breakthrough in the investigation when it recovered the gun used to murder Ms McKee following extensive searches of fields in Derry.
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