Mr Mijailovic's lawyer said he denied involvement in the killing
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A Swedish court has ruled that a new suspect in the Anna Lindh murder case can be held for two weeks while police gather more evidence.
The court named the 24-year-old suspect as Mijailo Mijailovic, a Swede of Yugoslavian origin, and ordered a psychiatric examination.
He was arrested on Wednesday on a higher degree of suspicion than a previous 35-year-old suspect, who was released the same day.
Police failed to find evidence linking the first suspect to the stabbing of Ms Lindh, the country's foreign minister, in a Stockholm department store on 10 September.
But Swedish media reports have speculated that police have DNA evidence against Mr Mijailovic linking him to a baseball cap found near the scene of the crime.
They have quoted sources close to the police saying that they are confident the murder has been solved.
Request for release
Prosecutors have until 10 October to file charges against Mr Mijailovic, or to submit a new request for him to be remanded in custody.
Police say they will only talk publicly about the evidence they have against him after he has been charged.
Police have been looking for a man caught on store security cameras
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It is not clear whether they have received the results of DNA tests on the murder weapon, which are being carried out in the UK.
Mr Mijailovic's lawyer, Peter Althin, said his client denied being involved in the killing and asked the court to release him.
"He has been detained, but we are miles away from a conviction in a trial. He is not guilty until there is a sentence," he said.
Police have been anxious to avoid a repeat of the failure to solve the 1986 murder of Prime Minister Olof Palme, which happened a few blocks away from the Lindh murder.
In that case, the murder weapon was never found and a man convicted was freed on appeal.
The first suspect in the Lindh case was arrested because of his similarity to a man caught on security cameras in the NK store where Ms Lindh was stabbed.
However, DNA analysis failed to link him to the baseball cap.