Otoniel, 50, was captured by Colombian military forces in the country's northwest municipality of Urabá Antioquia, according to local media reports.
Prior to the 50-year-old drug trafficker's capture, the Colombian government was offering up to $800,000 in reward money for information leading to Otoniel's capture and conviction.
At the same time, the US Department of State was offering a reported $5 million.
Colombian President Iván Duque stated in August that it was becoming increasingly difficult for the Clan del Golfo leader to continue evading authorities due to his growing health issues, including diabetes and high blood pressure.
Duque warned that Otoniel would have to submit to authorities or "receive the full weight of the law and the full force of our security forces."
Within recent months, authorities have been closing in on Otoniel, resulting in several firefights with the drug trafficker's forces.
Clan del Golfo is present in 10 of Colombia's 32 provinces and is estimated to have around 1,200 armed troops - many of whom are former far-right paramilitary fighters, according to Reuters. The group has also been accused of illegal mining and orchestrating the murders of various community leaders in the country.