In a statement given to the 'Journal', the Policia Judicia confirmed that two men, aged 19 and 26, were arrested in relation with the killing of Mr Houston in Alvor on September 6.

Sources in Portugal also revealed the men were apprehended in Lagos, about 20 kilometres from Alvor, and may have been preparing to travel by bus to Lisbon before flying to Brazil.

The suspects' nationalities have not been disclosed. However there are strong indications they are Brazilians.

The pair were due to appear before a judge last night in Portimão and were expected to be to be remanded in custody pending trial and any subsequent investigations.

It's also understood that police have had 15 detectives working day and night on the case since Paul Houston's body was discovered along a walkway in the small seaside town of Alvor almost two weeks ago.

On Monday thousands of people gathered at St Mary's Church, Ballybrack, for the funeral of Mr Houston, who owned the well-known Houston's Shoes on the Strand Road in Derry and was president of Greencastle Golf Club.
During the service Father Paddy O'Kane PP Moville told the congregation Paul's wife Celine had described him as a man "once met, never forgotten."

The 51 years-old was a father of four and grandfather of one. He was attacked shortly after he left a karaoke bar in Alvor, where he had been holidaying with his wife and another couple.

A post mortem examination revealed he died from a brain haemorrhage following a severe beating.