The 32-year-old was arrested on Tuesday on suspicion of the murder of Aseel Al-Essaie, 23, who was shot in a city street.
Aseel was shot in his chest in Daniel Hill, Upperthorpe, on Saturday, February 18.
He had just arrived for a family gathering to celebrate his twin sister's engagement when he was gunned down.
In total eight arrests have been made over the shooting.
A 30-year-old man was arrested first on suspicion of conspiracy to commit murder.
Next to be arrested was a 22-year-old man, who was held on suspicion of murder along with two teenage boys, aged 15 and 16, who were arrested on suspicion of conspiracy to commit murder.
A 57-year-old woman was arrested next on suspicion of assisting offenders.
On Monday, armed police stopped a mini bus travelling along The Parkway towards Sheffield city centre and arrested a 29-year-old man on suspicion of murder and a 23-year-old woman on suspicion of assisting an offender.
The latest arrest, of a 32-year-old man held on suspicion of murder, was made on Tuesday night.
The suspects have all been bailed pending further enquiries.