Man fatally stabbed in Sydney's west

A man has been stabbed to death in a western Sydney driveway, with his neighbour arrested after a stand-off at gunpoint with police.

The 45-year-old victim was found in North Parramatta with stab wounds to his back and neck after reports of two men fighting before 9pm on Thursday.

Police attempted to revive the man but he was pronounced dead at the scene by paramedics.

Officers then tried to speak to a 35-year-old man in a unit on the same street, who refused to leave the home.

Police in ballistic armour surrounded the unit block, handguns drawn and aimed, as negotiations continued, vision aired by the Seven Network shows.

The man surrendered himself to police at 2.30am on Friday morning and he was identified as the dead man's neighbour.

Parramatta homicide detectives are yet to reveal what lead to the altercation.

"We're still in the early parts of the investigation," Detective Inspector Barry Vincent told reporters in Sydney on Friday.

"We believe they are known to each other, that's all I can say at this stage."

The Seven footage showed a blue plastic sheet was still covering the dead man's body on the footpath in the early hours of Friday morning, as police in forensic jumpsuits bundled evidence into brown paper bags.

The arrested man was taken to Westmead Hospital where he is being treated for an injury sustained before police arrived.

Police are yet to locate the alleged murder weapon.