One dead, one arrested after Balmain stabbing

The NSW Health Minister says he is "devastated" after the body of a man was found stabbed to death inside a home in Sydney's inner west.

Police were called to the home on Nicholson Street in Balmain East at about 3.45pm on Thursday over concerns for the welfare of those inside, police said.

On arrival officers found the body of a 62-year-old man.

A 40-year-old man was arrested and is in hospital for treatment for lacerations.

Police confirmed the two men were known to each other.

The Sydney Morning Herald reports a health case worker has died and his client taken into custody 

Health Minister Brad Hazzard and Minister for Mental Health Bronnie Taylor issued a joint statement on Thursday evening following the incident.

"We and the NSW Health family are devastated by the tragedy that has fallen upon one of our committed health care workers," the statement says.

"We extend our deepest sympathy to the family, friends, and co-workers of the victim.

"Our first priority here is providing every support necessary to the colleagues and loved ones of the victim, who are understandably deeply distressed."

"As this is an ongoing NSW Police matter, we can provide no further comment at this time."

A crime scene has been established.