MIDDLESEX CENTRE, ONT. -- A 26-year-old London woman has been charged with aggravated assault after she allegedly stabbed another woman in the city's Old East Village neighbourhood.

The incident happened around 5 p.m. Monday on Elizabeth Street, just north of Dundas Street.

Police say two women, who were acquaintances, began to argue and one woman pulled out a folding knife and stabbed the other.

Bystanders in the area attempted to help, and flagged down a passing officer, who applied a tourniquet to slow the bleeding before the woman was taken to hospital by paramedics.

The 23-year-old woman suffered a serious, life-threatening injury and remains in hospital in fair condition.

The suspect was located about 20 minutes later hiding in some bushes. Police say she attempted to flee on a bicycle but was stopped by an officer and arrested.

She was being held in custody on the aggravated assault charge pending a court appearance on Tuesday.