The men, aged 44 and 49, became involved in an argument at a Kembla Street unit block about 8.15pm.

During the argument, the younger man allegedly armed himself with a knife, threatened the older man and cut him across the arm.

A scuffle ensued before the older man allegedly grabbed the knife and stabbed the younger man in the shoulder.

Another resident contacted police, who arrived a short time later.

Officers attached to Wollongong Local Area Command established a crime scene, which was examined by specialist forensic officers and detectives.

Both men were arrested and treated by paramedics before being taken to Wollongong Hospital.

They were later released and taken to Wollongong Police Station, where they were charged with affray.

They are set to appear in Wollongong Local Court in late April.

The incident was the second alleged stabbing Wollongong police were called to on Wednesday.

It follows an earlier incident where a 24-year-old man sustained stab wounds at a Russell Vale property.