Toronto police have seized a knife and handgun after arresting a man they allege was trying to lure two people into a fight.

Police were called to the scene in the Queen Street West and Bathurst Street area about 5 a.m. Monday, they said in a news release.

Police allege the accused had a knife in his hand and was baiting two other people into a fight.

"The accused fled the scene, and police chased after the man. During the arrest, a loaded silver handgun fell from his clothing and onto the sidewalk," police allege.

Police have charged Chenzhe Li, 37, of Toronto with 10 offences:

  • possession of a weapon dangerous to the public peace (two counts)
  • carrying a concealed weapon (two counts)
  • firearms-related offences (five counts)
  • possession of ecstasy

Li was scheduled to appear in court on Monday.

No allegations against Li have been proven in a court of law.

The first stabbing homicide of 2011 occurred at Portland Street and Queen West, a few blocks away from this latest incident.

Early on New Year's Day, a minor altercation outside a bar turned deadly an hour later. One man returned with a knife and stabbed two people after luring them into an alley. Brian Takahashi died of his injuries and a second man was critically injured.

Luke Heath, 27, of Toronto has been charged with first-degree murder and attempted murder in connection with the stabbings. His next court appearance is scheduled for Jan. 23, 2012.

Early Sunday, a sexual assault reportedly occurred in a secluded area near Portland and Queen West, police said. No arrest has been made yet in that case.