It will be alleged a 37-year-old man was walking along Castlereagh Street when he was attacked by a group of people on Wednesday afternoon and sustained multiple stab wounds.

Police say the alleged assailants left the scene, and the injured man ran into nearby Charles Street.

Witnesses heard the man calling for help, placed him in a car, and took him to Coonabarabran Hospital.

He transferred to Dubbo Base Hospital, where underwent surgery and remained in a serious but stable condition.

Police from Mudgee Local Area Command launched an investigation into the incident. They arrested a 21-year-old man in Coonabarabran on Friday afternoon. He was refused bail ahead of an appearance at Dubbo Local Court.

The investigation is ongoing.

Anyone with information about the incident is urged to contact Coonabarabran detectives on 6842 7299.