Police were called to Church Terrace in Aylsham at 5.15pm on Saturday following reports of a stabbing.
The victim, a man in his 20s, was taken to hospital for treatment, but has since been discharged.
A man in his 60s was later arrested on Castle Meadow in Norwich at around 7pm on suspicion of aggravated burglary and assault (GBH).
He was taken to hospital for treatment for a hand injury and then to Wymondham Police Investigation Centre for questioning, where he remains.
Part of Castle Meadow was cordoned off as part of the investigation.
A spokeswoman for Norfolk Constabulary confirmed both parties are known to each other.
It is thought the man may have travelled into the city on a bus.
One eyewitness said: “There was shouting that someone got stabbed.
“He got off a bus covered in blood.”
