Police officers carried out a number of pre-planned coordinated raids as part of the investigation into the death of Jarvin Blake, who was stabbed to death in Burngreave last Thursday afternoon.
The 22-year-old, from Gleadless, was knifed at the junction of Brackley Street and Catherine Street at 3.20pm, in what detectives are treating as a targeted attack.
South Yorkshire Police said a car pulled up and some people inside jumped out and chased Jarvin and his friend before they were both stabbed.
Both men were rushed to hospital but Jarvin could not be saved.
His friend, a 23-year-old man, was seriously injured but was discharged over the weekend after treatment.
Today, a 24-year-old man from Pitsmoor is being held in connection with the murder
A police spokesman said: "A 24-year-old man has today been arrested on suspicion of murder following the fatal stabbing of a Sheffield father-of-three.
"The man, from Pitsmoor, was arrested this morning following a series of warrants carried out in connection to the death of Jarvin Blake.
"He was also arrested on suspicion of attempted section 18 wounding and perverting the course of justice. He remains in police custody.
"Jarvin Blake, 22, was fatally stabbed during an incident in the Burngreave area of Sheffield just after 3pm on Thursday.
"A 23-year-old man also injured during the incident, is now in a stable condition.
"Enquiries are ongoing and further warrants will be carried out throughout the day."
Jarvin was a young father, with three children under the age of five years old.
Earlier today, Detective Chief Inspector Steve Handley said: "It is vital for the protection of the community that those people who use such excessive levels of violence are identified and prosecuted.
"We have to make sure that communities kept safe and that Jarvin's family, partner and children get justice.
"I am appealing to anyone with any information in relation to the events of March 8 to come forward."
He re-appealed for motorists who were in Burngreave on the day of the attack to check their dashcam footage.
Anyone with information should call the major incident team on 01709 443528 or Crimestoppers on 0800 555111.