"Tired but overjoyed: we captured the terror suspect last night in Leipzig," the police said in a tweet.
The police had been looking for the suspect, Syrian refugee Jaber al-Bakr, after raiding a flat in the nearby city of Chemnitz on Saturday.
Several hundred grams of "highly volatile" explosives were found at the property, investigators said.
About 100 people were evacuated from the block of flats as the explosives were moved for a controlled detonation.
