Man arrested in relation to 19-year-old Melbourne gangland murder

Melbourne detectives have arrested 44-year-old Thomas Ivanovic in connection to the fatal shooting of gangland icon Richard Mladenich almost 20 years ago.

Operating under "Purana Taskforce", officers swooped on the man in Brunswick West just before 11am today.

The man will be interviewed by police in relation to the murder, as well as the alleged trafficking of cocaine and vehicle insurance fraud.

The shock arrest comes 19 years after Mladenich, 37, was gunned down inside St Kilda's Esquire Motel on May 16, 2000 in a brutal episode of Melbourne's ongoing gangland war.

Mladenich, known colloquially as "Mad Richard", worked for infamous Melbourne gangster Carl Williams for a period of time before their relationship soured over Mladenich's soaring drug debt, which police were told was $120,000.

Three people witnessed the shooting but have not been able to identify the shooter, who was said to be wearing a hoodie and dark sunglasses.

In December 2002, police offered a $100,000 reward for information in relation to his murder and in May 2011 the reward was increased to $1 million.

In July this year Detective Sergeant Jesse Maxwell of the Purana Taskforce said investigators strongly believed Mladenich's murder was solvable.

"While that was a period of significant violence and a number of underworld figures were murdered, we believe there are still people out there who were involved in those criminal groups and have information about who murdered Richard and why," he said.

"Almost two decades have passed and allegiances and associates are almost certain to have changed over that time, so people who may not have been in a position to speak to police when Richard was killed could finally be ready to come forward – we're certainly ready to speak to them."

The $1 million reward for information relating to Mladenich's murder is current and police are urging anyone with information to contact Crime Stoppers on 1800 333 000.