Police say a tip led them to a property in the Comox Valley where they located the 55-year-old man and seized a 2003 Ford F350 truck for further examination.
Police have not released the man's identity because he has not yet been charged, but he is expected to appear in court later today to face a charge of failing to remain at the scene of an accident.
Bally, 48, was struck and killed on Monday by a vehicle, which police identified as a Ford truck. He was cycling southbound on Highway 19A in Fanny Bay on Vancouver Island at the time.
He was found in a ditch after being reported missing, and declared dead at the hospital.