The victim, a 30-year-old, passed away from stab wounds to his chest at Port Macquarie Base Hospital at around 5.40pm following an incident in Beacon Court, Lighthouse Beach.

A second man, a 32-year-old believed to have been involved in the incident, is now on the run.

Crime scenes have been established at addresses at Beacon Court and Rushcutter Way. The incident occurred at about 12.40pm on Friday (May 4, 2018).

Police and emergency services were called to the scene where they found the victim with critical injuries to his body.

The man was assessed by NSW Ambulance paramedics on site before being rushed to hospital.

Shocked neighbours watched on as police closed off the normally quiet street to incoming traffic and began collecting evidence and statements from witnesses.

A person of interest, police now believe can assist with their inquiries, could not be found at the scene.

It is believed he fled on foot and was last seen on Ruchcutter Way.

Police are now appealing for public assistance to locate a man.

Police want to speak a 32-year-old described as being of Caucasian appearance, about 190cm tall with a thin build, brown hair and brown eyes.

He is likely to be unshaven and wearing dark clothing.

Chief Detective Inspector Guy Flaherty confirmed it appears the parties involved in the incident are known to each other and the identity of the alleged offender is known to police.

Police are urging the public to call them immediately on Triple Zero  (000) if they see him, and are warned not to approach him.

Anyone with other information relevant to the investigation should call Port Macquarie Police immediately on 6583 0199 or Crime Stoppers on 1800 333 000.