A 27-year-old man was allegedly dragged 100 metres by a ute along Jersey Road in Blackett at around 8.45am.
Paramedics rushed to help the man but he died at the scene.
The incident prompted an almost 24-hour manhunt for the driver, who had fled.
A 39-year-old man presented himself to Mount Druitt Police Station at 6.30am and has now been arrested.
CCTV released of the incident appeared to show the 27-year-old, who was dressed in hi-vis, being dragged alongside the ute before the vehicle left the scene.
Police will allege that the 27-year-old had got out of his vehicle after being threatened by the car following him and “words were exchanged”.
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