Mexican military and police have arrested a man accused in the 2016 murder of a young woman in the United States, where the FBI had named him one of its 10 most wanted fugitives, authorities said on Saturday.

Alejandro Rosales Castillo, a 27-year-old American, is accused of killing Truc Quan "Sandy" Ly Le, a woman with whom he worked at a restaurant in Charlotte, North Carolina. 

Castillo was captured Friday in the city of Pachuca, about 50 miles (80 kilometers) northeast of Mexico City, the FBI said.

He had "a red notice and an arrest warrant for extradition" and is charged with "first-degree murder, armed robbery, vehicle theft and kidnapping," Mexico's Security Secretary Omar Garcia Harfuch said on social media. 

Rosales Castillo was brought before the public prosecutor to begin legal proceedings. 

The FBI had offered a $250,000 reward for information leading to Rosales Castillo's capture. 

Law enforcement agents "worked countless hours to develop leads to locate Castillo, ultimately uncovering where he has been hiding the past several years," an FBI statement said.

US media reported that Rosales Castillo had a brief relationship with his victim, then 23, and had borrowed money from her. 

She disappeared after agreeing to meet him at a gas station in Charlotte, North Carolina.

Investigators believe Castillo forced his victim to withdraw her savings from an ATM, before taking her to a wooded area and shooting her in the head, according to media reports.