Josh Stevenson, 19, is accused of stabbing 18-year-old Declan McNulty in the stomach.
It is thought the Glasgow teen was holidaying with mum Alexandrina and his younger brother in the Turkish seaside town of Marmaris.
Declan, from Leicester, was rushed to intensive care following the alleged attack in the early hours of Monday July 1.
Eyewitness Tanya Robinson was left shocked after the incident, and said the victim was "doubled over clutching his stomach and trying to hold his sides in."
A Foreign Office spokeswoman said: "We are aware of the arrest of a British national on July 2 in Marmaris.
"We are providing consular assistance."