Antoine Denive, 27, a suspected arms dealer and the subject of an European arrest warrant issued by French authorities, was detained in the town of Rincon de la Victoria on the south coast of Spain, reports Xinhua.
He was arrested with two other people who police described as being a Serb and a Montenegrin.
Denive is thought to have escaped from France and moved to the south of Spain where he continued his arms dealing activities.
A search of his accommodation uncovered several false documents along with computer material which are currently being analyzed.
Denive is suspected of giving weapons to Amedy Coulibaly, who killed five people in two separate attacks on January 8 and 9 last year in Paris.
He shot four of his victims in a Jewish supermarket in the east of Paris before he was killed by French security forces.
The incidents coincided with the killing of 11 people at the satirical magazine 'Charlie Hebdo' by brothers Said and Cherif Kouachi who were known to Coulibaly.
Security forces later discovered that Coulibaly had been in Spain on January 2, a week before his death, as he accompanied his wife and three family members to the Madrid airport, from where they flew to Turkey and onto Syria.