A third person has been arrested in connection with the "unprovoked killing" of 23-year-old Indian student Anuj Bidve in Salford, police said.
The man was held late Tuesday on suspension, following the arrest of two teenagers earlier in the day.
Identity of all the three suspects, who were in police custody, has not been revealed.
Bidve was with nine other Indian students when he was shot on Monday by two white men after a short conversation in what could be a case of hate-crime.
Hailing from Pune, Bidve was a postgraduate student of Microelectronics at Lancaster University and was visiting friends in Manchester during the Christmas holidays when he was gunned down.
In a statement, Bidve's family has said his death had left "a void in our lives."
"Anuj was a loving son, a super caring brother and first and forever a friend for many.
"He valued his relationships and put them over anything else," the family said in a statement released through the Greater Manchester police.
Professor Bob McKinlay, deputy vice chancellor of Lancaster University, said Bidve had been "at the very beginning of a promising career and had only been at Lancaster for a short time.
"We are deeply saddened by the loss and our thoughts are with his family and friends, and we will do all we can to support them at this sad time."
One held as Indian's killing sparks outrage on FB
The police have not ruled out racism as a motive for the killing.
Without ruling out racism as motive, chief superintendent Kevin Mulligan had on Tuesday said: "This appears to be an unprovoked attack and we can't establish a motive at this time. We are investigating every possible aspect and we are in the early stages of the investigation, but we are not ruling anything out".