A man has been arrested after a woman died, a man was stabbed, and another man was assaulted with a hammer in a shocking daylight attack.

The culprit allegedly attacked the man and woman at their property near Bega on the New South Wales south coast at about 3.30pm on Friday.

Police alleged he then carjacked a vehicle on Sapphire Coast Drive to get away, seriously assaulting the male driver with a hammer in the process.

A man has been arrested after a woman died, a man was stabbed, and another man was assaulted with a hammer in a shocking daylight attack. Police are pictured at the scene on Friday evening

A 20-year-old man was arrested by specialist police near Sapphire Coast Drive, Bournda

Residents on that road between the suburbs of Bournda and Kalaru were urged to remain inside their homes.

He was taken to a Sydney hospital and remains in a critical condition.

About 8.20pm, a 20-year-old man was arrested by specialist police near Sapphire Coast Drive, Bournda.

He was taken to Bega Police Station and inquiries are continuing.