Khan (45) was arrested from Sathyamangalam in Erode district of Tamil Nadu on August 15 where he was in hiding, police said.
They said Khan was allegedly involved in planning the Malleswaram bomb blast on April 17, 2013 and had also supplied explosive materials for it.
At least 16 people, including 11 policemen, were injured in the blast near the bustling Karnataka BJP office in a crowded residential area ahead of the state assembly election. The bomb was strapped to a motorbike parked between avan and a car.
Accused of supplying materials in this case, he was sentenced to life imprisonment but was released in 2010 afterserving 12 years sentence.
Involved in several terror acts carried out by Al-Umma, Khan had gone into hiding after the Malleshwaramblast, police said.
Stressing that there are 20 accused in the Malleswaram blast case and 17 have been arrested so far, officials said Khan has been taken to police custody and an investigation is underway.
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