The top suspects remain elusive

He has not been accused of killing anybody with his own hands, but the court has said that officers are responsible for the actions of men under their command.

Nato said his capture should serve as a warning to other indicted war crimes suspects still on the run.

"There will be no hiding place for anyone accused by the tribunal of these horrific crimes," Nato Secretary-General George Robertson said in a statement.

"Let me be crystal clear to those with guilty consciences: you have only two choices - turn yourself in with dignity or justice will be brought to you."

The arrest of Mr Nikolic comes one month after two very public failed attempts by Nato-led troops in Bosnia to catch former Bosnian Serb wartime leader Radovan Karadzic and his military chief Ratko Mladic, who top The Hague's most wanted list.