A south-west Sydney student charged over a terrorist stabbing tried to force his way into a suburban hair salon to continue his attack and then ran at police when they arrived to arrest him, new footage shows.

The footage of Saturday's attack at Minto shows grandfather Wayne Greenhalgh, 59, wounded and running for his life as his attacker chases him down Ohlfsen Road armed with a large knife.

The footage, obtained by A Current Affair, also shows how his brave neighbours intervened and fought his attacker, 22-year-old Ihsas Khan, who told them he was "prepared to die".

Mr Khan is also shown on the footage running, knife still in hand, at the first police patrol van that arrives at the scene.