Police confirmed late on Thursday the 47-year-old had been taken into custody.
Aboriginal and Torres Strait Islander people are warned the following article contains names and images of the deceased.
A man accused of abducting a five-year-old Northern Territory girl has been arrested by police hours after her body was found.
The body of Sharon Granites, who her family has asked to be known as Kumanjayi Little Baby, was located just before midday on Thursday about 5km from where she went missing.
Kumanjayi Little Baby was reported missing from her home on Marshall Ct in Old Timers Camp, Alice Springs, about 1.35am on Sunday.
“This is an incredibly distressing development,” NT Police Commissioner Martin Dole said.
“Sharon’s family have been formally notified and our thoughts are firmly with them at this devastating time.”
A post-mortem examination is expected to be conducted on Friday, as investigations continue.
Late on Thursday night, NT Police confirmed Jefferson Lewis, 47, was located and arrested at a residence in Alice Springs.
“Further information will be provided early in the morning,” police said in a statement.

In a statement read out NT Police’s executive director of cultural reform, Leanne Liddle, the family shared a heartfelt letter.
“To Kumanjayi Little Baby,” the statement from her mum said.
“Me and Ramsiah miss and love you.
“I know you are in heaven with the rest of the family with Jesus and the Father, Son and Holy Spirit.
“Me and your brother will meet you one day.
“We are giving our lives to Jesus.
“It is going to be so hard to live the rest of our lives without you.
“Ramsiah wants to tell you that when he sees you in heaven, he is going to give you the biggest hug ever.
“Love from Mum and Ramsiah.”
The family also thanked the community for its efforts during the search.

NT Chief Minister Lia Finocchiaro said the community now faces “dark days” that “rock everyone”.
“The heartbreak of this is real,” she said on Thursday.
“I’ve also spoken to our colleague, Senator Jacinta Nampijinpa Price, who is the auntie of Kumanjayi Little Baby. And so over the days and weeks, we stick together as Territorians, as we always do.
“We are focused on a grieving family, a grieving town and a grieving NT.”
She added in a statement on Facebook on Thursday night that Lewis was in custody.
“Great work by NT Police,” Finocchiaro wrote.

Price also issued a statement, saying the news of Kumanjayi Little Baby’s death was “devastating” and as part of the child’s extended family the loss was felt deeply.
“My thoughts are with her family and the Alice Springs community who are grieving,” she said.
“This is the worst possible outcome, and no child should ever be placed in harm’s way.
“Now we need justice for this horrific crime.”
Earlier on Thursday evening, Prime Minister Anthony Albanese said he hoped Kumanjayi Little Baby lived on in every “heart she ever touched”.
“Our hearts are broken that the case of the little girl missing in Alice Springs has had such a tragic ending,” his statement on X said.
“She was just at the start of life’s adventure.

“This is the tragic outcome we were all desperately hoping against.
“No words can measure up to the immensity of the grief her family is going through. In their time of terrible loss, all Australians hold them in our hearts.
“This is devastating for the whole Alice Springs community, which came together to find her.
“We wish them strength, and also to the police in their difficult work as they pursue answers and, ultimately, justice.”
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