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Salvatore Lo Piccolo, who had been on the run for 20 years, was apprehended along with his son and two other men near the Sicilian capital, Palermo.
All four men were among Italy's top 30 most wanted mafia suspects, police said.
Mr Lo Piccolo, 65, is believed to have succeeded the Cosa Nostra mafia's "boss of bosses", Bernardo Provenzano, after he was arrested last year.
Mr Provenzano, who led the Cosa Nostra from the early 1990s, was arrested in April 2006 after being on the run for more than 40 years.
He is currently being held in isolation at a high security jail in Terni, central Italy.
After Mr Provenzano's arrest, Mr Lo Piccolo was believed to be among his most likely successors.
The others were another of Mr Provenzano's senior aides, Antonino Rotolo, and Matteo Messina Denaro, a younger mafia leader from the Sicilian province of Trapani.
Mr Rotolo was arrested in June 2006. Mr Denaro remains on the run.
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