The unnamed man, 55, was taken into custody on Friday evening in the Tübingen area south of Stuttgart.
Police on Thursday released images of a suspect in a supermarket near Konstanz.
Earlier this month retailers received an email threatening that food across Europe would be poisoned unless €11.7m ($13.8m; £10.3m) was paid.
Several jars of baby food that had been contaminated with a liquid used in anti-freeze were subsequently recovered by police.
The jars contained ethylene glycol, an odourless and colourless toxic liquid that has a sweet taste and is known to attract children and animals.
There were no reports of any injuries.
The suspect was reportedly arrested by police travelling in a helicopter following tip-offs from the public.
Police say their suspicions about the man have now strengthened, and they will release more information later.
It is unclear whether he is the same man as in the photo or whether contaminated food is still in circulation.
Supermarket customers are being urged by authorities to remain on the look-out for tampered goods, Die Welt reported.
Officials have not said which retailers were targeted.
They said that while there was no need to panic, shoppers should remain vigilan
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