Published Tuesday, 04 September 2012
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He was arrested on Saturday along with a 29-year-old man, who remains in police custody.
An investigation has begun into how the man died, and a post-mortem examination is to be carried out.
His name has not yet been released.
A spokesman for the Police Ombudsman's Office said: "Our investigators are at Musgrave Police Station and are overseeing a detailed forensic examination of the scene in order to establish the exact circumstances of the death.
"Police Ombudsman family liaison officers have been in contact with the deceased man's family and the coroner's office has been informed."
Mr Gray, aged 52, was found dead in his Cregagh Road flat by a friend on Friday at around 5pm.
Police believe he was the victim of a vicious assault.
A 62-year-old woman detained on Monday afternoon is also still being questioned about the murder.
SDLP MLA for South Belfast, Conall McDevitt, has expressed deep concerns over the death.
Mr McDevitt said: "I eagerly await the outcome of the Police Ombudsman's investigation into this matter.
"People will clearly question why this man had been in police custody since Saturday until his death on Tuesday morning without being transferred from the PSNI station."
He concluded: "While we await the outcome of the Police Ombudsman's report it will be essential that as much of the facts around this case are disclosed particularly given that two others remain in police custody connected with the same murder inquiry."