Mitch Bleimuth, 18, is alleged to have attended a party at a home in Fleetwood Cres, Warilla, on Friday when a fight broke out about 11pm.

During the altercation, a 16-year-old Albion Park boy and a 17-year-old Warilla boy suffered stab wounds to their backs.

Both teenagers underwent surgery at Wollongong Hospital for their injuries and have since been discharged.

The offender is alleged to have fled the area following the altercation.

Following enquiries by Lake Illawarra detectives, Bleimuth was arrested on Saturday night and charged with two counts of reckless wounding, and affray.

At a sitting of Wollongong Bail Court yesterday, police prosecutor Sergeant Wendy Nolan said the case was one of extreme violence and asked that bail be refused for the protection of both the community and the victims.

"The defendant also appears to have gang involvement in the Warilla area," Sgt Nolan said.

She said a strong case existed and, if convicted, Bleimuth was likely to face a custodial sentence.

Solicitor Angela Melouney objected to the suggestion of gang involvement, saying it was highly prejudicial to Bleimuth's case.

Ms Melouney said the party was mainly attended by males who were consuming alcohol and that an altercation broke out which did not involve Bleimuth.

She said while there was a suggestion of a weapon being used, there was no evidence of that weapon in the fact sheet. It was not a foregone conclusion that if Bleimuth was convicted, he would face a custodial sentence, she said.

The defendant had a good family upbringing and was employed full-time as a labourer, Ms Melouney said. "If the matters proceed he will be defending them."

Court registrar Tina McKenna refused bail and adjourned the case to this morning.