Detectives from An Garda Síochána have arrested a 66-year-old man in Donegal on suspicion of the murder of two Ulster Defence Regiment (UDR) soldiers in 1972 and on suspicion of aiding and abetting an explosion.
He is expected to appear at Dublin High Court on Tuesday, November 6.
A spokesman for the Public Prosecution Service for Northern Ireland said: "Following careful consideration of all available evidence, a decision has been taken to prosecute one person for the offence of murder and for aiding and abetting the causing of an explosion.
"Extradition proceedings were initiated in the High Court in Dublin on Monday November 5, to seek the extradition of one man from the Republic of Ireland for trial in Northern Ireland.
"One man was subsequently arrested in County Donegal this evening and is due to appear in court in Dublin tomorrow."