The Metropolitan Police said a 19-year-old is in currently in custody at a south London police station.
It comes after one of the youths thought to have been the target of the gang responsible for the shooting in Stockwell contacted police.
Detective Chief Inspector Tony Boughton revealed the development as a £50,000 reward was offered for information leading to the arrest and conviction of those responsible for the shooting of Thursha Kamaleswaran.
Police are hunting for three youths who are believed to have opened fire after chasing two others into a shop in Lambeth at about 9.15pm on Tuesday.
As the pair hid inside, the gunman stopped at the door and opened fire indiscriminately, hitting Thursha and the 35-year-old shopkeeper.
Detective Inspector Broughton said that the youth who had come forward was assisting police.
"He has given his account of what happened to him, running into the shop and taking cover," he said.
"We are still trying to trace the other individual and appeal to him to come forward."
Thursha, believed to be London's youngest gun crime victim, is in serious but stable condition after being hit in the chest. The bullet narrowly missed her heart, reports said.
"It is clear now there were other children in the shop when the shooting occurred," said Det Insp Broughton.
"Thursha, the five-year-old victim, was visiting the shop owners who are her auntie and uncle. With Thursha and her mother were her siblings, a three-year-old girl and a 12-year-old boy."
Family friend Velluppillai Navaratnam told reporters at the scene of the shooting: "It has been a very difficult time for family and friends.
"We are all praying for her to get well soon."
The 35-year-old man, believed to be Roshan Selvakumar, who was shot in the head at the Stockwell Food & Wine shop, also remains in hospital.
Sky reporter Rhiannon Mills, in Lambeth, said: "As both victims remain in a critical but stable condition, a large police investigation is still under way at the shop on Stockwell Road.
"A number of forensic officers have been heading into the building, clearly trying to piece together more details about what happened on Tuesday night.
"With suggestions this may have been gang related, they believe the answers to this crime lie in the community."
Courtesy: Sky News HD
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