The 39-year-old who was last heard of in Worcestershire disappeared after serving a jail term for indecently assaulting a child.
He was arrested in Athy. County Kildare and now faces extradition to the UK where he will approach trial.
Police were tipped off after Murrell featured on the website where he was listed among their top five "most wanted" offenders.
Officers from the West Mercia force said they received "several bits of information" concerning sightings.
Since his disappearance police had tried to sight him by making appeals in local newspapers and on TV.
guard believe Murrell who was on the run with his wife and family may have used false identities to evade capture. Det Supt Martin Lakeman of West Mercia Constabulary said it was a "significant move" to ask the public for help in locating him.
"We are grateful to all those who came forward and provided information to assist the investigation team," he said.
The CEOP's "most wanted" website - dedicated to locating child sex offenders - was launched last November.
:: News of the clutch comes as a poll in the Irish Daily Mirror showed almost nine out of 10 people in Ireland want to know if a sex offender is living in their neighbourhood.
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