A 34-year-old Mangerton man will appear in Wollongong Local Court this morning, charged with the man's murder, after his bail was refused in a court sitting on Saturday.

Meanwhile, residents have told how the deceased arrived in the street two weeks earlier, out of money and looking for a place to stay.

Paramedics were called to a Housing Commission unit in Myuna Way just before 3am on Friday following a triple-0 report a man had been stabbed.

On arrival, ambulance officers discovered the body of the 37-year-old man inside the home unit.

A police spokesman said he was suffering a wound to his lower back and was unable to be revived.

Police arrested two men, aged 34 and 44, and both were believed to be occupants of the unit.

A crime scene was established and examined by forensics officers.

The two men in custody were led separately through the crime scene by a strike force team comprising Wollongong and Lake Illawarra detectives.

The 34-year-old was charged with murder. He was refused bail by police and again during a sitting of Wollongong Local Court on Saturday. He will return to court this morning.

The second man was released without charge.

A neighbour said the victim, described as a fit, athletic man about 183cm tall, arrived in the street on November 12, looking for a friend.

"He was sitting on the steps outside and said he had run out of petrol and didn't have any money to fill the tank," the man said.

"No-one knew who this friend was, so one of us agreed to take him in until he got paid. He stayed a couple of days then left, then came back on Wednesday (November 26), asking if he could stay two more days.

"The neighbour said yes. He was gone by Thursday morning. The next we heard of him, he was dead."

A red Ford Falcon, believed to have been driven by the deceased, was later found to be stolen.

The man's body was taken to Glebe where the results of a post-mortem were expected to be released today.