The 69-year-old man was subsequently released under investigation while inquiries continue.
Amy Shepherd, 86, was found dead at her home at Folly Hall Gardens in Wibsey in August 1994.
A post mortem revealed that she had been strangled, stabbed and sexually assaulted. Police said there was no sign Ms Shepherd put up a struggle and suspect she may have known her killer or was tricked into inviting him into her flat.
She was stabbed with a six-inch kitchen knife, recovered from the scene, and strangled by a ligature. At the time of Ms Shepherd’s death detectives believed there were similarities between her killing and that of 51-year-old Wendy Speakes in Wakefield the previous March.
Less than a fortnight after Ms Shepherd was killed, 80-year-old Mary Kilbride, of Odsal in Bradford, was also found dead in a bedroom at her house, prompting fears of a serial killer.
Richard Whelan was jailed for life the following year for killing Mrs Kilbride, but was found not guilty of killing Ms Shepherd.