A 56-year-old man was arrested at Ben Gurion Airport overnight on Wednesday, on suspicion of murdering a woman at the Diplomat Hotel in Tel Aviv in 1986.
The murder victim was named as Amira Grif. Police say the suspect fled Israel on the same day as the murder.
In 2002, he was arrested in the US and sentenced to prison over fraud charges.
After being released in the US he was extradited to Israel. The man is being questioned by Yarkon police and is expected to appear before a Tel Aviv Magistrate's Court this morning.