Shots rang out in South Yarra, Melbourne, at about 11.40pm on Friday August 4, 2023 (pictured, emergency services at the scene)

A man has been charged over the brazen cold-case assassination of an alleged underworld figure in a packed nightclub precinct.

Mohammed Keshtiar, known as ‘Afghan Ali’, had been walking with another man when he was gunned down by a drive-by shooter in a laneway off Melbourne’s popular Chapel Street precinct in South Yarra on August 4, 2023.

A 23-year-old Narre Warren man was arrested on Friday and charged with murder and conduct endangering life.

Mr Keshtiar and his associate had been walking on Almeida Crescent after a gym session when a stolen grey Prado approached and a passenger fired multiple shots in their direction, police said.

A person in dark clothing then got out of the car and fired several more rounds at Mr Keshtiar as he lay incapacitated on the ground.

The gunman made a quick getaway in the car, which was later found on fire in Endeavour Hills.

Passers-by attempted to help the 53-year-old but he died in hospital, while his associate was not hurt and fled the scene to safety.

A $1 million reward was offered in September for information to help solve the cold-case murder.

Shots rang out in South Yarra, Melbourne, at about 11.40pm on Friday August 4, 2023 (pictured, emergency services at the scene)

Shots rang out in South Yarra, Melbourne, at about 11.40pm on Friday August 4, 2023 (pictured, emergency services at the scene)

Underworld figure Mohammed Keshtiar (pictured) was gunned down in Melbourne

Keshtiar had links to Melbourne's underworld

Underworld figure Mohammed Keshtiar (pictured) was gunned down in the drive-by shooting  

A man was arrested on Friday over the shooting (pictured, witnesses at the scene on the night)

A man was arrested on Friday over the shooting (pictured, witnesses at the scene on the night)

Homicide Squad Detective Inspector Dean Thomas at the time described the incident as a ‘deliberate, planned and organised assassination’ and a concerning display of public violence.

He said Mr Keshtiar was linked to a number of outlaw motorcycle gangs and associated with Middle Eastern-organised crime groups.

Detectives had been keeping an open mind over whether the killing was linked to a ongoing underworld war over the profits of illegal tobacco.

The accused is due to face Melbourne Magistrates Court on Friday.

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