Will this sensor work with arduino?
The sensor you specified states:

Output: SPDT Relay Output


If accurate, it may be inferred that the output is simply 3 contacts where one is normally open and the other is normally closed and the 3rd is the common.  If true then you can treat the output as if it were an ordinary Single Poll Double Throw (SPDT) switch.  Note, with regard to processors, an ordinary switch may need to de-bounced.  This depends on how the state of the switch is used.