Her grief-stricken father Noel said she was barely recognisable when he went to identify her body.
Previously one man aged 32 was initially arrested and released and is no longer a suspect.
A second man was later arrested. Also aged 32, the PSNI recently said he remains a suspect but has been released on bail.
This morning the PSNI said: “Detectives investigating the murder of Natalie McNally in Lurgan on 18 December 2022 have today, 13 January, arrested a 46-year-old man in the south Belfast area.
"He has been taken to Musgrave Police Station where he is currently being questioned by detectives.”