The deceased man was fatally stabbed when he and four friends of his squabbled with a taxi driver and a friend, also a taxi driver, outside the club at about 4:30 a.m.
The perpetrator was arrested by police three hours later at his home, and has confessed to the stabbing. The second taxi driver was also arrested for complicity.
The perpetrator said he threw the knife into the sea after the incident, indicating the spot to police, who have recovered the weapon.
According to first reports, the cab driver told police the tourists had been eating at a fast food restaurant across the street from the club and were harassing them with lasers, and he and his friend got initially involved in a heated verbal argument with them before he took the knife from his taxi.
The dead man was tentatively identified as Robert James Sevvage, from Basingstoke, south central England.
Initial reports said that he suffered a stab wound to the heart. The other four Britons, who are not in serious condition, also suffered stab wounds in the back and other parts of the body.