Update, 5pm: The 20-year-old man who was stabbed in the back is now in a stable condition at the Alfred Hospital in Melbourne after undergoing surgery.
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Update, 3.45pm: Detective Senior Constable Christopher Brown said police believe the parties were known to each other.
He said the 30-year-old man, currently in police custody, allegedly fled the scene and was located a short distance away where he was subsequently arrested by uniformed officers.
He is assisting police with their enquiries.
The 20-year-old man, who sustained stab wounds to the back, has undergone surgery and is in a critical condition at the Alfred Hospital.
The 21-year-old woman sustained minor injuries as a result of the alleged altercation.
The State Emergency Service was called out last night to conduct a line search in order to look for any form of evidence. Police believe a kitchen knife was used.
Police investigations are ongoing. Anybody who saw anything is urged to contact Crime Stoppers.
Earlier, 6:30am: Police are investigating after two men were injured during an altercation in Wendouree last night.
Emergency services were called to an address at Willow Grove about 11.20pm, where police allege an altercation occurred between two men and a woman.
A 20-year-old Deer Park man had been stabbed numerous times and was taken to Ballarat Base Hospital and then transferred to The Alfred hospital in a serious condition.
A 30-year-old Wendouree man was later arrested and taken to the Ballarat Base Hospital in a stable condition for treatment of upper body injuries, where he remains under police guard.
IN OTHER OVERNIGHT NEWS: Man arrested after ramming police car in Delacombe
The female was not injured.
A search for the weapon was later conducted in the area.
Police are continuing their investigations.
Anyone with information is urged to contact Crime Stoppers on 1800 000 333 or submit a confidential report online at www.crimestoppersvic.com.au.
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