The 34-year-old underworld figure was gunned down on the street in a hail of bullets by a man who emerged from a black Audi on June 17 last year.
Homicide Squad Commander Detective Superintendent Danny Doherty said police arrested a 32-year-old prisoner at Silverwater jail on Tuesday and charged him with Hamze's murder.
Police allege the man was in the Audi at the time of the killing.
"You're in the car at the time of a murder, then you're going to be charged with murder," Det Supt Doherty told reporters.
Police don't know if he was "a gun for hire" or the motive behind the murder of the cousin of Brothers 4 Life gang leader and convicted murderer Bassam Hamzyhit.
"Obviously there's more than one person involved in this offence and those inquiries are still ongoing," Det Supt Doherty said.
The accused man was already in custody over the alleged attempted murder of Hamze's brother Ibrahem Hamze in North Sydney in August last year.
Police were relying on a swathe of evidence collated by Strike Force Englorie, inlcuding electronic surveillance to make the arrest.
"There's a number of people we believe are involved prior to, during and after and we are ... keen to get more information about who else was responsible for the murder," Det Supt Doherty said.
Although police "would love to" identify the gunman, anyone directly involved could be charged.
"It doesn't matter if you source the car, you source the plates, whether you've disposed of the car, whether you pull the trigger ... you're all complicit," he said.
The high-profile murder shocked Sydney after Hamze was mowed down in front of horrified onlookers, after dining a Japanese restaurant on Bridge Street.
"That would have been horrific to witness," Det Supt Doherty said.
"Today is a breakthrough - hopefully there is more to come."
The Audi was later found burned-out at Northwood on Sydney's north shore.
The charged man was remanded in custody to appear at Downing Centre Local Court later on Tuesday.
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