An Australian man has been arrested and named by police as the prime suspect in the murder of an Australian former Hells Angels member in Thailand, Cambodian police said.

The update came on Friday, after an American was charged in Thailand over the kidnap and killing.

Wayne Rodney Schneider, 37, was kidnapped on Monday by several men outside his house in the Thai resort town of Pattaya.

Security guards saw the Australian beaten unconscious and then thrown into the back of a van.

A day later police discovered his corpse in a grave in woodland outside of the city. His neck was broken.

Cambodian police said the prime suspect, Antonio Bagnato, a 27-year-old Australian national, was arrested in the Cambodian capital where he is thought to have fled after the murder.

“He was arrested on Thursday afternoon at a hotel in Phnom Penh,” Chhay Sinarith said, without giving further details.

Thai police believe Bagnato was out drinking with the victim shortly before his disappearance.

They also confirmed a 21-year-old American man – who has not been named – has been charged with the kidnap and murder of the Australian.

Police commander Sukthat Pumpanmuang claimed that the man “confessed” to driving the vehicle but “said he did not kill the victim ... and did not know anything about the murder”.

Three other suspects are being hunted by police in Thailand. It was not immediately clear if Bagnato would be sent to Thailand.

Thai police have yet to establish a motive but have ruled out a link to drug dealing.