A 25-year-old man and a 32-year-old man are being questioned on suspicion of the murder of Jordan Thomas, who suffered fatal injuries when he was shot in a car in Sheffield city centre on Sunday night.
A 27-year-old man was seriously injured in the attack.
South Yorkshire Police confirmed the two suspects were arrested on Christmas Day morning in connection with the fatal shooting on Sunday evening on Derek Dooley Way.
The two men were taken to police custody for questioning.
A spokeswoman for the force added: “Police are continuing to investigate and are conducting further inquiries, and would still urge the public to please come forward if they have any information.”
Detectives from South Yorkshire Police have confirmed that they believe the shooting could have been a targeted attack.
The two men were in a silver Ford Mondeo, which was stationary at traffic lights on the A61 Derek Dooley Way, when they were attacked at about 10.15pm on Sunday.
Mr Thomas was a passenger in the car.
Police believe the car was shot at from the passenger side.