The man was arrested upon arriving at Dublin airport earlier today
The 29-year-old Romanian man will appear later this evening before the special court sitting having arrived from Bucharest in Romania on a European Arrest Warrant (EAW).
Gardaí confirmed the arrest following a two year investigation into Mr Dunne's death.
"Gardaí have arrested a male, aged in his late 20s, of Romanian nationality on foot of a European Arrest Warrant at Dublin Airport shortly before 4pm this afternoon, Friday 3rd December 2021,” gardaí said in a statement.
"He has been arrested in relation to the murder of Francis Dunne in Co Cork on December 28, 2019."
Mr Dunne's headless and partially dismembered body was found in the garden of a derelict house on the Boreenmanna Road in Cork in 2019.
It is believed Mr Dunne was killed close to where his body was discovered in a garden at 4pm on December 28 by a local resident who was out searching for a lost pet.
A team of four Cork detectives flew to Romania in late January 2020 and spoke with a man, on a voluntary basis, at a police station in Bucharest.
CCTV security camera footage is understood to have played a key role in the ongoing Garda investigation.
Mr Dunne was described as "a gentleman" who was very quiet and best known for his love of singing.
He had battled an alcohol addiction for many years and had been supported by Cork homeless charities.
When discovered, Mr Dunne had been beheaded and both his arms had been removed.
The missing body parts were later recovered a short distance away in the garden.
Detectives believe Mr Dunne died sometime between December 27 and 28.
A GoFundMe appeal in honour of Frankie Dunne raised more than €5,000 for Cork homeless charities.