The brother of Saad Al-Hilli is being questioned by detectives investigating the killing in the Alps of Saad, his wife Ikbal, mother-in-law Suhalia al-Allaf and local man Sylvain Mollier.
Mr Al-Hilli's brother Zaid Al-Hilli, who is in his 50s and lives in Surrey, has previously denied any feud with his sibling over an inheritance. He was arrested by police at an address in Chessington.
Around 100 police officers in Britain and France are investigating the killing of the family on September 5 last year as they drove through a remote area close to Lake Annecy.
French investigators came to the UK and searched the al-Hilli family home in Claygate, Surrey, in the wake of the deaths.
They said in September that they were investigating three lines of inquiry, focusing on Mr al-Hilli's work, his family and links to his native Iraq.
Annecy's chief prosecutor Eric Maillaud said last year that there would be no ''quick solution'' in finding the killers.
More top news
Labour leader Ed Miliband is due to set out his party's plans on how it would cut tuition fees.
New drug driving laws are to come into effect next week, including laws on some prescribed medications.
The Duke of Cambridge followed in his mother's footsteps today as he visited Commonwealth War Graves in Japan.