Kent police have been hunting Mr Noye, 51, since he fled the UK after Stephen Cameron, 21, was stabbed to death with a nine-inch knife on a sliproad to the M25 at Swanley, near Dartford.
The victim's girlfriend, Danielle Cable, has told how he was knifed in a confrontation with the driver of a Land Rover Discovery.
As police checked the ownership of 17,000 similar vehicles, it emerged that their key suspect was Mr Noye, of Sevenoaks, who in the Eighties was jailed for handling gold from the pounds 26m Brink's-Mat raid, Britain's biggest robbery. But he had already vanished abroad, reportedly to Spain. It was claimed that he also visited northern Cyprus.
For more than two years he had remained at large, but yesterday Kent police announced that he had been arrested on Friday night at Vejer, near Cadiz, by Spanish police, following the issuing of a warrant by Interpol and a 30-day surveillance operation which also involved officers from Britain.
It was reported last night that the Government has submitted an extradition request to Madrid. If Mr Noye chooses to fight the extradition, there could be a long battle in the Spanish courts.
His arrest follows a statement last week by Mr Cameron's parents, challenging him to come out of hiding and prove his innocence. Mr Noye is currently being held at the National Police headquarters in Cadiz, in southern Spain.
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