One man is in custody and a woman in hospital following a stabbing at a restaurant in the city's Chinatown area Wednesday afternoon.

According to reports, the stabbing occurred following an argument in the kitchen of Chinese Traditional Buns at 536 Dundas St. W.

Police responded to the restaurant after a female, who was stabbed in the neck, ran out of the kitchen bleeding. A man was also reportedly bleeding.

Both the victim and the accused are employees at the restaurant.

Police said the woman remains in surgery and is listed in grave condition.