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The incident took place at a residential property in Neeld Crescent, Wembley on Tuesday.
While the murder victim is yet to be formally identified by police in the UK, reports from India indicate that it was Kontham Tejasvini – a young professional from Hyderabad.
A post-mortem examination is scheduled, following which the police are expected to formally release her identity.
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The 23-year-old has now been arrested from Harrow, near the crime scene of Neeld Crescent in Wembley.
“He was arrested on suspicion of murder and taken into custody at a north London police station,” the Met Police said, without naming him again as he can now be named only if he is charged.
“Officers attended along with the London Ambulance Service and two women were treated for stab injuries. Despite the efforts of emergency services, a 27-year-old woman sadly died at the scene. Her next of kin are yet to be informed,” the Met Police said in a statement.
A second woman, aged 28 and also unnamed, was taken to hospital with stab injuries that were later assessed as not life-threatening.
Two other people, a 24-year-old man and a 23-year-old woman, were arrested at the scene on suspicion of murder. While the man remains in custody, the woman has been released without further action, the police said.
Police officers were called to Neeld Crescent in Wembley, north London, at 9.59 am local time on Tuesday to reports of a double stabbing.
Two female victims were treated at the scene by the emergency services and while one died on the spot, the other remains in a north London hospital.
”This has been a fast-moving investigation and I would like to thank the public for sharing our appeal for information about this man. He is now in custody,” said Detective Chief Inspector Linda Bradley, from the Met’s Specialist Crime Command.
”I recognise the significant concern this incident has caused in the community and I would like to reassure the public that a dedicated team of detectives are working to establish what happened. Local officers will remain in the area over the coming days to respond to any concerns,” she said.