Police hunt continues after fatal South Melbourne stabbing

Police believe they are closing in on the killer who stabbed a man to death on a busy South Melbourne street last night.

Extensive security camera footage has helped detectives hunting for the offender and the murder weapon, Victoria Police have said.

Just after 11pm, Clarendon Street was declared a crime scene after a man in his mid-40s was found lying on the footpath badly injured.

He was taken to hospital but died on arrival.

It's believed he was stabbed in the neck from behind, while walking with a friend near the intersection of Bank Street.

Late last night, heavily armed police searched nearby flats after receiving a tip-off the offender may have been inside.

“Early indications suggest it isn’t a random attack and it is a possibility they may be known to each other,” Detective Senior Sergeant Brett Kahan said.

Police did not comment on whether the attack was drug-related.

After reviewing CCTV footage from two bank branches, police are confident they’ll be able to identify the offender who they believe fled into a nearby laneway.

Fire crews cleaned the footpath this morning, as SES crews prepared to begin a line search.

Detectives have also been canvassing the area.

Police said a female friend of the victim who witnessed the attack is assisting police with their enquiries.

Local business owners said they were stunned by the violence.

“It’s quite cowardly that someone could do that somebody and the event was taking somebody’s life,” Marisa Yannas said.

Anyone who witnessed the crash is urged to contact Crime Stoppers on 1800 333 000.