Police arrest man over fatal Victoria stabbing

A man wanted by Victorian police over a fatal stabbing during a home invasion has been arrested after a stand-off at a Melbourne hotel.

Police say they located Vatthana Chounlamountry at a hotel in Sunshine on this morning.

The 30-year-old is wanted over the stabbing of a 22-year-old man who died in hospital on Tuesday after he was stabbed in his St Albans home.

Chounlamountry was in the company of a woman, 24, and two children, when he was found by police.

Following negotiations, the two children were released uninjured.

Chounlamountry was arrested by homicide detectives with help from the special operations group about 30 minutes later.

The woman was also arrested.

The couple has been taken to Footscray Hospital, where they remain under police guard.

Police will interview Chounlamountry at a later date.