Reputed underworld figure Nissim Alperon, the brother of recently assassinated crime boss Yaakov Alperon, was detained at a restaurant located on Tuval Street in Ramat Gan Sunday night.
Eighteen of Alperon's associates were also arrested.
Dozens of police officers, as well as sappers, were reportedly dispatched to the scene.
A street near Ramat-Gan's Diamond Exchange was closed for traffic during the arrest, and the entire area was cordoned off.
The arrest interrupted a meeting of a number of underworld figures, some of whom are very well-known to police. A pistol was found during a search of one of the participant's motorcycle.
Amir Sanker and Eitan Gerla, who were convicted of the attempted murder of Nissim Alperon a year ago, were recently sentenced to lengthy jail terms.
Sanker and Gerla, who was named as an accessory to the fact, targeted Alperon in May of 2007 in the central Israeli city of Ramat Gan. They attempted to gun him down, injuring a police officer and a civilian in the process. Both were arrested shortly after the incident.
Both men are affiliated with Abargil crime family, who has long been feuding with the Alperons. Sanker, 36, was sentenced to 10 years in prison, while Gerla was sentenced to eight. Both were ordered to pay NIS 20,000 (approx. $5,000) in damages as well.
Yaakov Alperon was killed some three weeks ago when his car exploded near a bus stop on the corner of Yehuda Maccabi Street and Namir Road in Tel Aviv. Three bystanders were lightly injured in the blast.