The 32-year-old man from Preston was arrested overnight on suspicion of murder and is currently in custody.
It brings the number of people in custody in connection with the investigation to seven after six other men aged between 18 and 29 were arrested earlier this weekend.
Police were called at around 3am on Friday (June 17) by the Ambulance Service after a man was found with stab wounds in Jutland Street.
The man – 42-year-old Lee Dawson, originally from Preston but living in Sunderland - was taken to Royal Preston Hospital for treatment but sadly later died and a murder investigation was launched.
A Home Office post-mortem examination showed Mr Dawson died as a result of stab wounds.
Police add that enquiries into the death remain ongoing.
Anyone with information can contact police on 101 quoting log 0149 of June 17.
Alternatively contact independent charity Crimestoppers on 0800 555 111.