The 20-year-old, who was arrested on Wednesday on suspicion of the murder of Jordan Thomas, has been bailed pending further inquiries, police said today.
Mr Thomas, 22, from Firshill, died in hospital, after being shot as he sat in a car at traffic lights on Derek Dooley Way, Sheffield, on December 21.
Mohammed Asif Yousaf, 32, of Violet Bank Road, Sheffield has been charged with his murder and the attempted murder of the 27-year-old driver of the car. He has been remanded in custody and is due to stand trial in June.
A 25-year-old man also arrested in connection with the death remains on bail pending further enquiries.