Detective Inspector Michael Boutouridis described it as a "bloody" attack and said it was "quite possible" the alleged attacker was under the influence of drugs during the assault.
"It was quite a bloodied scene", he said.
"The man we have in custody was violent and it took a number of police officers to subdue and arrest him".
Paramedics worked to revive Liam Anderson at the scene.
Further information has been revealed saying the deceased was 26-years old and the man arrested was 20.
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QUEENSCLIFF | Heartbreaking crime scene on Pavillion St, after brutal assault on 26yo Liam Anderson - son of Angry Anderson - who died as paramedics tried desperately to save him.
Mr Anderson's alleged attacker remains in police custody and is expected to be charged with murder later today.
Neighbours have told 9NEWS they heard sounds of moaning coming from Pavilion Reserve just after 5.30am.
"Then at 6.10am it was really loud and then all of a sudden it just stopped".
A statement on behalf of the Rose Tattoo singer was issued on Sunday afternoon, confirming Liam's death and asking the media and public to respect the family's privacy.
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In addition to being the song of Angry Anderson, 26-year-old Liam Anderson was also an aspiring rapper, who performed around Sydney under the name Ranford Bigsby. The assault was brutal. A MAN has died after allegedly being brutally bashed on the side of a road in Sydney's north.
A fight broke out between two men in a reserve off Pavilion Street in Queenscliff early on Sunday morning.
Sadly, the young man could not be saved and died in the back of an ambulance while en route to hospital.
When they arrived, "two people were found fighting".
Police were still trying to formally identify the victim at 8am.
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"Capsicum spray was used, OC spray, and significant force was used to arrest him", he explained, with the 20-year-old suspect being taken to the Manly Police Station for questioning.