A teenager has died after being stabbed during an early-morning incident in Melbourne’s CBD with a 19-year-old man taken into police custody.

Emergency services were called to the corner of King and Little Bourke streets at about 2.40am on Sunday after reports of a violent confrontation at a nearby licensed venue.

WATCH THE VIDEO ABOVE: Teenager fatally stabbed on Melbourne’s King Street.

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Police found a young man, believed to be in his late teens, suffering from multiple stab wounds on King Street.

The man was pronounced dead at the scene and has not yet been formally identified.

A 19-year-old man was arrested a short time later in Aurora Lane and is expected to be questioned by investigators.

Authorities believe the two men were known to each other.

A crime scene remained in place on Sunday morning with King Street closed between Bourke and Lonsdale streets as police continue to investigate the circumstances surrounding the fatal stabbing.

Police were called to Melbourne’s CBD over the stabbing. Credit: 7NEWS

The busy nightlife district has previously been the focus of scrutiny over late-night violence.

Police say the investigation is ongoing and have urged anyone who witnessed the incident or has relevant dashcam or CCTV footage to contact Crime Stoppers on 1800 333 000.