A man has been arrested following a stabbing incident at Naracoorte early on Sunday morning.

Police received a number of reports of two groups of people fighting in Ormerod Street about 1.30am.

The two groups then moved into Sandstone Avenue where the fighting continued.

Police patrols attended and attempted to identify those involved in the altercation however most had dispersed before their arrival.

A short time later, a 24-year-old man presented at the Naracoorte Hospital with stab wounds to his chest.

He was subsequently transferred to the Mount Gambier Hospital in a serious but stable condition.

His injuries are not considered life threatening at this time.

Later on Sunday morning, Limestone Coast CIB Detectives arrested a 22-year-old local man in relation to the stabbing.

He has been charged with aggravated assault and was bailed to appear in the Naracoorte Magistrates Court on December 8.

Police said investigations were continuing.

Anyone with information that may assist the investigation is asked to contact Naracoorte Police or to remain anonymous call Crime Stoppers on 1800 333 000.