The 30 year-old was on top for the short time the bout lasted at the Toyota Center in Houston, Texas as Arce struggled to get in range to do any significant damage to Donaire, who reigned in accurate power shots after a cagey opener.
Arce, 33, was down from a short right hand in the second session, after which he began to engage Donaire with more frequency, which ultimately proved to be the downfall of the Mexican future Hall of Famer.
Pound for pound star Donaire got through with a right to the side of the head late in the third round, which took away Arce’s equilibrium and ‘Travieso’ never fully recovered from that point on as he touched the canvas again.
Referee Laurence Cole allowed the fight to go on, even though Arce looked worse for wear and it proved to be a bad decision as the challenger took a huge left hook from Donaire and hit the ground hard.
Cole never even bothered to give the full count as Arce was flat on his back and not getting up, leaving Donaire to celebrate another impressive knockout win against a seasoned world-class operator.
Donaire looked huge at the 122lb limit on the night and may now be ready to move up to featherweight, where clashes with Chris John, Orlando Salido or Daniel Ponce De Leon could become a reality next year.