Greek police have confirmed 22-year-old Bakari Henderson from Austin, Texas, was beaten to death by a group of people at a bar early on Friday in Laganas, Zakynthos.
Laganas is an area of the island known for unruly behaviour by young foreign tourists.
Police said a 32-year-old British security guard of Serbian origin and a 34-year-old Greek barman were arrested and set to appear before a prosecutor charged with murder.
They are thought to have used brass knuckles to pummel his head and according to Greek media reports the fight started when a man from a group of Serbians went up to a group of Americans that included Henderson and broke a glass on their table.
An investigation to identify the rest of the people involved is ongoing.