The shooting happened shortly before 1:30 a.m. outside the Copabanana/University City on the 4000 block of Spruce Street.
Police arrived to the scene after receiving a call from a University of Pennsylvania security guard who heard gunshots.
They arrived to the scene to find a 31-year-old man unconscious and shot multiple times.
They say at least ten shots were fired, and the victim was shot at point blank range.
Authorities say the shooting was sparked by an argument inside the club between the victim and a 26-year-old male suspect.
The dispute ended up outside the club, and police say that's when the suspect opened fire.
The victim was rushed to the Hospital of the University of Pennsylvania, where he was pronounced dead.
Officials say University of Pennsylvania police officers chased the suspect and arrested him on the 4000 block of Pine Street.
They also recovered a weapon that police say matches ballistic evidence found at the scene.
The suspect was being questioned by homicide detectives.
Authorities said while the club is frequented by University of Pennsylvania students, none of those involved are connected to the university.
No names have been released.