Police said Mark Lugo had about a half million dollars worth of other stolen artwork in his New Jersey apartment, including another Picasso.
Authorities raided his home on Wednesday and said they found the drawing worth $350,000.
It had been reported stolen from a New York hotel last month.
Lugo was scheduled to be arraigned Friday. His lawyer said the 30-year-old intends to plead not guilty.
The Associated Press contributed to this story