According to the 'Wort' newspaper, a special police unit stopped and arrested the man on the streets of Soleuvre on Friday.
The 29-year-old Soleuvre inhabitant is thought to have taken over leadership of the Calabrian 'Ndrangheta mafia from his father in 2014. The man only recently arrived in Luxembourg.
The 'Ndrangheta mafia is also active in in Canada, where their activities include drug trade, money laundering, and illegal sports betting. A further 27 members of the mafia were arrested last week.
Santo Rumbo, as the man is known, was arrested under a mandate issued by Rome and scheduled to see the investigating magistrate.
At the time of writing, there is no information as regards extradition.