Police said emergency services were called to a house on Shoreline Drive about 2.20am after reports of an assault.

Police arrived to find a man, 27, suffering multiple stab wounds to his back.

He was treated at the scene by ambulance paramedics before being taken to John Hunter Hospital where he remains in a stable condition after undergoing surgery.

A man, 28, was arrested at the scene and taken to Raymond Terrace police station while police established a crime scene and launched an investigation into the circumstances of the stabbing.

Following inquiries, police said the 28-year-old man was charged with wound person with intent to cause grievous bodily harm and affray.

Police say the two men are known to each other. The Newcastle Herald understands the pair are brothers.

Police allege the pair were fighting before the younger man was repeatedly stabbed in the lower back.

The older man was refused bail by police and did not make the cut-off to appear in Newcastle Bail Court on Sunday.

He will appear in Newcastle Local Court on Monday.