Bangladeshi police have arrested the convicted killer of Indian music magnate and Bollywood producer Gulshan Kumar, on the run from Indian police for a month, an officer told AFP Friday.

Abdul Rauf Dawood Merchant was arrested at a house earlier this week, Rezaul Karim, a police chief in the Brahmanbaria district in eastern Bangladesh, said.

Police also arrested a Bangladeshi man on charges of harbouring Merchant, 39.

"Two men were arrested and one of them is Abdul Rauf. He apparently slipped into the country and was pretending to be a Bangladeshi man and was carrying a Bangladeshi passport," Karim said.

Another police officer told AFP that Merchant had made arrangements to travel to a third country using a Bangladeshi passport.

Merchant was convicted of music magnate Kumar's death seven years ago and sentenced to life imprisonment in India.

Mumbai police say he has been on the run for more than a month. He absconded during a 14-day temporary release given once every two years to most prisoners.

Kumar, founder of the T-series music label who also produced a handful of Bollywood films, was shot dead in Mumbai outside a Hindu temple just before his morning prayers in August 1997.

Several people were initially arrested in connection with his death, reportedly because he refused to give in to extortion demands from Mumbai's criminal underworld, but only Merchant was convicted.