NSW teenager charged after fatal stabbing

A 16-year-old NSW boy has been charged with murder and attempted murder, with police alleging an argument between three teenagers ended in a fatal stabbing.

Emergency services were called to a home at Swansea in the Lake Macquarie area about 8.20 pm Friday, following reports two boys had been stabbed in the front yard.

Officers found the pair, both 16, with stab wounds near the home.

Neighbours and police rendered assistance before paramedics arrived.

One boy died at the scene. The other was taken to John Hunter Hospital where he underwent surgery and remains in a serious but stable condition.

After a search, officers found a 16-year-old boy in the backyard of the home.

He was arrested and taken to Belmont Police Station where he has since been charged.

The boy was to appear in a children's court on Saturday with police expected to allege that he stabbed the other 16-year-olds following a verbal argument outside the property.

Inquiries continue.