Daniel Laughton was refused bail when he appeared in Wollongong Local Court yesterday morning charged with affray over the Friday night incident in Bellambi.

The court heard Laughton admitted being involved in the fight and having possession of a flick knife, and police expect to lay further charges.

According to police facts tendered to the court, the victim had a number of lacerations including two puncture wounds to his upper left arm and left forearm which required the removal of a portion of muscle.

The victim had to undergo surgery to repair muscle damage to his left arm sustained during the assault, the police statement said.

Police allege a fight broke out between Laughton and the victim after a large number of people left a party in Chounding Crescent about 10pm.

Laughton approached the victim at the corner of Chounding Crescent and Rothery St and they got into an argument, which escalated into both throwing punches, according to the tendered statement.

Laughton then left the scene and allegedly returned a short time later armed with a knife, which the victim described as a pocket/flick knife with an 8-10cm blade.

The victim was allegedly stabbed several times before Mr Laughton fled on foot.

Police arrived on the scene and administered first aid to the victim, before ambulance officers arrived and treated him before conveying him to Wollongong Hospital, the statement said.

A police search failed to locate the accused or the weapon and a crime scene was established.

The court heard police arrested Laughton at his Bellambi address at 6.35pm on Saturday.

He was charged with affray and further charges are expected to be laid once police investigations are complete.

Police alleged Laughton said: "The big bloke hit me with a bottle or something; I remember having a flick knife with me and I was waving it at the big guy."

Prosecutor Sergeant Anna Comer opposed bail and cited the serious nature of the offence and the likelihood of a custodial sentence.

"The accused armed himself with a knife and stabbed [the victim] several times," she said.

Laughton's defence solicitor asked the court to take into account the fact her client had assisted police, going to the station to provide information when they came to the Bellambi address.

Court registrar Tina McKenna refused bail citing "concern for welfare and protection for not only the victim, but the community in general". She adjourned the matter to today.