The 29-year-old was shot following an altercation in July in which he also suffered head and torso injuries.
Officers wearing tactical gear raided a property in Austral, west of Liverpool, early on Tuesday, arresting a 19-year-old man and seizing clothing as part of the investigation.
The teen was taken to Liverpool Police Station and charged with murder.
A critically injured Mr Radulovic was found on Donnelly Street in Balmain on July 29, following reports of an assault.
Police were told he was injured during a fight with two men who fled in a white Jeep.
Mr Radulovic was treated at the scene before being taken to Royal Prince Alfred Hospital, where he died a short time later.
The Jeep was found burnt out in Five Dock with a firearm inside.
A post-mortem examination revealed Mr Radulovic had suffered a gunshot wound.
One other person has been charged over the incident and remains before the courts.
The 19-year-old was refused bail and was due to appear before Liverpool Local Court on Tuesday.
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