The victim is recovering at Saint John Regional Hospital. (CBC)

Saint John police have one teen in custody after an overnight stabbing sent another young man to hospital.

Sgt. Chuck Elgee said a taxi driver called the police around 2:30 Saturday morning to report the incident on Ellerdale Street, in the city's east side.

When police arrived, they found the victim in the parking lot of an apartment building.

"There was a male located in a back seat of a car," he said. "He had been bleeding. He had been stabbed."

The police then entered the three-storey building where they found and arrested a second young man in his late teens.

"The victim was taken to hospital where he underwent surgery to a wound in his lower abdomen. At this point in time the major crime unit is still investigating to determine what started this altercation."

Elgee said the victim is in Saint John Regional Hospital and he is expected to recover from his injury.

Police continue to interview witnesses at the scene.