DETECTIVES investigating the gruesome murder of a convicted drug dealer have arrested and charged a Sydney man with kidnapping offences.

Terry Falconer's dismembered body was found by fishermen in seven garbage bags dumped in the Hastings River in northern NSW in 2001.

The body parts were allegedly wrapped in wire mesh and weighed down with rocks.

Police investigating Falconer's murder arrested a 30-year-old man at Castle Hill, in Sydney's northwest, about 7.15am (AEST) on Thursday.

He was taken to Castle Hill police station where he was charged with kidnapping offences, including detaining for advantage and causing injury.

He was also charged with breaking and entering with circumstances of special aggravation.

He is the fifth man to be arrested over the murder of 52-year-old Falconer, who was found dead before he was due to give evidence to an inquest into the deaths of an elderly couple.

He was refused bail and is due to appear at Central Local Court later on Thursday.