
Victim Craig Eade, 23, was found in a wheelie bin in Northbourne Street on Wednesday afternoon.
Detectives investigating the case have already charged Paul Watkins, 36, of Northbourne Street, with murder.
He appeared before magistrates sitting at Newcastle Crown Court yesterday and was remanded in custody
Today, a 30-year-old Gateshead man has been arrested on suspicion of conspiracy to murder.
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Enquiries into the incident are continuing.
Anyone with any information that may help police should contact police on 101 quoting log 594 01/03/17 or Crimestoppers anonymously on 0800 555 111.