The sergeant-at-arms of the outlaw motorcycle gang was arrested on Sunday and charged over the death of a man who was shot in the thigh and stabbed in the head at Bankstown in Sydney's west eight years ago.
He was initially refused bail and will appear in Downing Centre Local Court on Monday.
Tactical police arrested the 42-year-old after pulling over his black BMW at Edgecliff in Sydney's east.
He was taken to Surry Hills Police Station and charged with the murder of 29-year-old Youssef Assoum on December 11, 2014.
Police will allege his position in the bikie gang also links him to other crimes.
Homicide Squad commander Danny Doherty said Zahed was one of several targets of Taskforce Erebus who were tied to serious offences.
The taskforce is also investigating the murder of Zahed's younger brother, Omar, who was fatally shot at a western Sydney gym in May.
Zahed was critically injured during the ambush at Body Fit gym at Auburn.
Detective Superintendent Doherty said Sunday's arrest was high risk, with police shooting bean bag rounds during the encounter.
"Those bean bag rounds had to be used to get into the car and drag him out," he told reporters on Monday.
"We were concerned that he may be armed. The person involved has allegedly committed a murder ... he's the national sergeant-at-arms of the Comanchero (bikie gang), he's previously been shot at himself."
No weapon was found during the arrest.
Zahed was also charged with kidnap in company with intent to commit serious indictable offence (special aggravated kidnap).
The 42-year-old had been hiding out in Melbourne before the arrest, Det Supt Doherty said.
"We had information he was up in Sydney, and he was given a reception in Sydney that he deserved," he said.
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