A 28-year-old Diggers Rest man is in custody after a fatal stabbing in Point Cook in Melbourne’s west.

It’s understood an altercation occurred at a day spa on Point Cook Road at around 2:45pm yesterday when the stabbing happened.

It’s believed the two men involved were known to each other.

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The homicide squad is investigating.

Anyone with information is urged to contact Crime Stoppers on 1800 333 000 or www.crimestoppersvic.com.au.