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Radovan Karadzic, the former Bosnian Serb leader accused of war crimes and genocide during Bosnia's 1992-5 war, was arrested near Belgrade posing as a doctor of alternative medicine, sporting long hair, a beard and glasses to hide his face.
Serbian officials said he was walking freely around town and earned money from practising medicine.
They said they could not divulge more details because it might jeopardise efforts to arrest two other war crime suspects on the run. They are former Croatian Serb leader Goran Hadzic and Mr Karadzic's military henchman and the man who allegedly oversaw the Srebrenica massacre General Ratko Mladic.