A man has been arrested in relation to the horror attack on a grandmother outside a South Yarra church last weekend.

Penelope, 78, was opening up Saints Constantine and Helen Greek Orthodox church when she was kicked and punched by a man, and her trolley was snatched.

She was found bleeding on the steps outside the church just after 6am on Saturday morning.

Her trolley was found with her personal items untouched a short time after the attack.

A 36-year-old Box Hill man was arrested today in relation to the assault.

He is currently assisting police with their enquiries and is expected to be charged with assault and theft offences.

Penelope has returned home from hospital, and in a heartwarming moment, was reunited with her husband this morning.