Montreal police said the incident began at around 11 p.m. when a dispute broke out between the suspect and the victim near the intersection of Berri Street.
"At a certain moment, the suspect, aged 21, assaulted the victim, aged 47, with a sharp object. He wounded him in the upper body " said Const. Daniel Lacoursière.
The suspect ran from the scene, but witnesses were able to provide a description to emergency dispatchers and he was located a short time later.
The victim was taken to hospital where he later died from his injuries.
The suspect remains in police custody and will be questioned this morning. Police said it is still unclear what connection he may have had to the victim.
Officers set up a perimeter around the scene and the area remained closed several hours later.
This is the 13th homicide on Montreal police territory in 2013.