Police were reportedly called to Donald Street at 3am today, September 1.

Police reported two men were having an argument in an apartment, one aged 39 and the other 40.

It is alleged the younger man stabbed the 40-year-old man in the abdomen with a knife during the altercation. 

Police said the alleged offender fled the scene and called Triple-0 to report he was being chased by three men.

Officers attended the scene a short time later and the 40-year-old man was taken to the John Hunter Hospital in a serious condition to undergo surgery.

Police said he is now in a serious but stable condition.

The 39-year-old man was taken to Raymond Terrace Police Station where he was charged with wound with intent to cause grievous bodily harm.

He was bail refused and will face Raymond Terrace Local Court today.