A 13-year-old Chinese exchange student has been arrested over the fatal stabbing of a 14-year-old girl in the NSW Lake Macquarie Region.

Emergency services were called to Euston Close in at Edgeworth about 10.20pm yesterday and arrived to find a girl, 14, with a stab wound to the torso.

She was treated at the scene however later died at John Hunter Hospital from her injuries.

NSW Police Superintendent Tracy Chapman said both girls were exchange students and were staying with a host family after arriving from China eight days ago.

The pair were staying with a couple, a man and a woman aged in their 50s, and had been attending a local school as part of an exchange program.

The girls were due to return to China on August 16.

Chapman said the female host heard a “commotion” in one of the rooms before she found the older girl with a stab wound.

“No doubt this is a shock and a significant event in their lives,” Chapman said.

A knife was found at the scene which Chapman said appears to have been taken from a kitchen drawer.

She said police believe this was the weapon used to inflict the fatal injury.

A crime scene has been established and police are yet to formally identify the 14-year-old victim.

Chapman said there were “obvious complexities” regarding the language barrier while attempting to contact family overseas.

No charges have been laid Chapman said the 13-year-old is assisting police with their investigation.

Strike Force Agnes has been formed alongside homicide detectives to investigate the incident.

Neighbours told 9News the street in Newcastle’s western suburbs was usually a quite, peaceful place, and they were shocked by the death.

“It’s such a quiet street and we never have any any problems here. And everyone just goes about their daily business,” one said.