Kerry Scott, 24, was last seen alive walking home with 29-year-old Richard Tate after celebrating New Year at the pub in Waterlooville, Hampshire, where she worked.

Her body was discovered on New Year's Day at a lodging house in the town - a suburb of Portsmouth - by a relative who became concerned after she failed to answer the telephone.

Kerry had been severely beaten and had suffered other injuries inflicted with a sharp-bladed instrument.

Detectives had been trying to trace Mr Tate, who lived a few doors away from the dead woman.

Investigations continue

A spokeswoman for Hampshire police confirmed that he was arrested at a London address at 0500 GMT on Sunday.

She said that Mr Tate was to be interviewed on Sunday evening.

"He was arrested at 5am this morning by Metropolitan police officers who had been observing a London address following information gathered through inquiries.

"Inquiries are still continuing into the identity of the offender and into the circumstances surrounding the death of Kerry Scott," she added.

Mr Tate, who had been celebrating New Year with Kerry at The Centurion pub in Crookhorn, is to be interviewed at Portsmouth Central police station.

Anyone with information about the murder should contact the incident room at Fratton police station on 01705 8916512/3.