The man won the bench in handcuffs surrounded by police.
The man was wounded in the chest and was taken to Liverpool Hospital in a serious condition.
While a crime scene was being established, police were scouring the streets looking for the attacker.
About 11.45am, a 35-year-old man was dramatically arrested just 50m from where the incident took place.
An eyewitness, Jamie Stewart, of Bankstown, saw the attack unfold and said the assailant had asked the victim for a cigarette.
He said when the man said he did not have a cigarette, the alleged attacker pulled out a knife.
“And then bang: stab, stab, stab,” Mr Stewart said.