Niall Sheerin, 27, from Tyrconnell Street in Derry, appeared before Derry Magistrates’ Court via video-link on Thursday morning.
He is charged with possessing a firearm in suspicious circumstances and possessing a firearm with intent to endanger life.
A detective constable, who said he could connect Sheerin to the charges, told the court that DNA traces linked to the accused were found on the gun and the magazine.
The court heard Sheerin made no comment during seven interviews, but did give police a prepared statement in which he denied involvement in the killing of Ms McKee.
The Hammerli X-Esse .22 pistol was discovered during searches in the Ballymagroarty area of Derry last month.Following a 45-minute remand hearing, District Judge Steven Keown granted bail under several conditions, including a ban on Sheerin entering Derry city.
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