Man arrested after allegedly setting fire to Cranbourne home and fleeing with knife

A man has been arrested after he allegedly set fire to a Melbourne home before fleeing the property with a knife.

Authorities were called to the property on Wallace Road just before 1pm and found the home fully alight.

Police said the 35-year-old man was a arrested a short time later at a nearby oval.

The Cranbourne man was taken to hospital for assessment.

Another man, aged in his 60s, suffered a minor laceration and burns.

The blaze, which destroyed the property, has been brought under control, police said.