A 37-year old Irish man has been arrested after the death of a 31-year-old American woman in Hungary’s capital, police said.

Mackenzie Michalski from Portland, Oregon, was reported missing on November 5 after she was last seen at a nightclub in central Budapest.

Police launched an investigation and reviewed security footage from local nightclubs where they observed holidaymaker Ms Michalski with a man later identified as the suspect on the night of her disappearance.

Police detained the man, an Irish citizen, on the evening of November 7.

Investigators said Ms Michalski and the suspect met at a nightclub and danced before leaving for the man’s rented apartment.

A candlelit vigil, with sombre faces
The 31-year-old American tourist was killed while on holiday in the Hungarian capital (AP)

The suspect, whom police identified by the initials LTM, allegedly confessed to the killing at the apartment, but said it had been an accident.

Police said he attempted to cover up his crime by cleaning the apartment and concealing Ms Michalski’s body before purchasing a suitcase and placing her body inside.

He then rented a car and drove to Lake Balaton, around 90 miles south-west of Budapest, where he is said to have disposed of the body in a wooded area outside the town of Szigliget.

Video released by police showed the suspect guiding authorities to the location where he had left the body.

Ms Michalski’s parents are currently in Budapest, police added.

According to a post on a Facebook group called “Find Mackenzie Michalski”, which was created on November 7, Ms Michalski, who was known as Kenzie, was a nurse practitioner who “will forever be remembered as a beautiful and compassionate young woman”.

A pictorial tribute to the dead woman at the vigil
An Irish citizen has been arrested (AP)

At a candlelight vigil in Budapest on Saturday night, the victim’s father, Bill Michalski, told The Associated Press that he was “still overcome with emotion” at the death of his daughter.

“There was no reason for this to happen,” he said. “I’m still trying to wrap my arms around what happened … I don’t know that I ever will.”

Ms Michalski had visited Budapest before, and her father called it her “happy place”.

“The history, she just loved it and she was just so relaxed here,” he added. “This was her city.”