Police were called to a report of a stabbing in Green Lane, Chichester, about 8pm on Friday (31 March).
Officers responded to the scene and following a search of the area, a suspect was detained in The Hornet and a knife was recovered.
A 32-year-old man, from Chichester, was arrested on suspicion of committing grievous bodily harm and possession of a knife in public.
A 28-year-old local man self-presented to hospital, where he was treated for an arm wound.
Enquiries into this isolated incident are ongoing and the public can expect to see an increased police presence in the area in the meantime.
Anyone who witnessed what happened is asked to report it online or call 101, quoting serial 1264 of 31/03.