The 16-year-old was detained following the death of a 24 year old man in the city on Saturday night.
The victim, Gerard Quinn, died following the altercation in the Milldale Crescent area of Derry.
He was taken to the nearby Altnagelvin Hospital, but died a short time later.
A second 24-year-old man also received head injuries during the incident, which are not believed to be life threatening.
Police in the North are appealing for anyone with information to come forward.
