Morabito is considered to be the leader of the Ndrangheta mafia, which has its origins in southern Italy. He was arrested in the city of Joao Pessoa along with another Italian on Monday.
The arrest happened after joint police work with Italy, says Brazilian federal police.
Italy wants him extradited for drug trafficking, and he was one of the most wanted people in Italy when he was arrested at a motel in Uruguay in 2017.
Until then, he had lived with a false identity for 13 years in Punte del Este in Uruguay.
«Kokainkongen»
According to Brazilian police, Morabito has been involved in drug smuggling between Brazil and Europe since the 1990s.
He has been called the “cocaine king”, and is partly to blame for the introduction and sale of drugs in Italy.