The 26-year-old was detained on suspicion of murder and remains in police custody for questioning.
Police were called to Upper Chorlton Road, in Whalley Range, Manchester, around 2.20pm on Wednesday, following reports of a man being assaulted.
Officers found the 18-year-old victim, Kieran Crump Raiswell, on the scene, bleeding profusely from multiple stab wounds.
The young man was rushed to hospital but later died from his injuries.
A post mortem examination concluded the cause of death was a stab wound to the chest.
Detective Chief Inspector Peter Marsh, from Greater Manchester Police's Major Incident Team, said: "We have made an arrest but the investigation is continuing.
"I still want to hear from you if you saw Kieran walking along Upper Chorlton Road on Wednesday afternoon or if you saw anyone acting suspiciously."
Anyone with information is asked to call police on 0161 856 4711 or, to remain anonymous, contact Crimestoppers on 0800 555 111.