POLICE have arrested - and are expected to charge - a man over the rape and suspected murder of Jill Meagher, who disappeared early Saturday while walking 700 metres home from a Brunswick bar.

The man - who was wearing a blue hoodie - was filmed on CCTV talking to Ms Meagher just moments before she disappeared.

Yesterday afternoon, more than five days after Ms Meagher, 29, was last seen leaving the Sydney Road bar, police arrested the 41-year-old Coburg man.

Police sources confirmed the suspect is the man seen wearing a blue hooded sweatshirt in the footage taken from inside a dress shop about 1.40am on Saturday, just minutes after Ms Meagher left Bar Etiquette.