A 66-year-old man, arrested on Monday on suspicion of murder of Craig Douglas, has been freed on police bail pending further inquiries until 24th March.
A 49-year-old man who was also arrested in connection with the incident was earlier released without charge.
Inquiries into the circumstances of Mr Douglas’ death continue and police are appealing to anyone who witnessed the incident to come forward.
25-year-old Mr Douglas, who was heterosexual, was stabbed in the centre of Manchester’s gay village at 7.30 on Monday evening.
He and another man were approached by two men and the four got into an argument on Canal Street, close to its junction with Minshull Street and Aytourn Street.
Craig was then stabbed in the neck with a small knife.
He was taken to the Manchester Royal Infirmary but died a short time later.
A post-mortem examination later revealed Mr Douglas died as a result of a single stab wound to the neck.
Detective Chief Inspector Steve Eckersley, from GMP’s Major Incident Team, said that although the attack took place in the ‘gay village’ it is not being treated as a homophobic incident.
“While it is true to say that this kind of incident is incredibly rare on Canal Street it does not take away from the fact that Craig’s death is a tragedy,” he added.
“I would like to appeal to any witnesses or anyone with information about the incident to come forward.”
Anyone who witnessed the incident is asked to call Greater Manchester Police on 0161 856 3540 or Crimestoppers, anonymously, on 0800 555 111.
GMP’s Gay Village Safer Neighbourhood Policing Team, which is based at the Lesbian and Gay Foundation on Princess Street, can be contacted on 0161 856 3277.