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.
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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.
