Toronto's New Year's celebration was marred by the city's first homicide of 2011, after a man died following an early-morning knife fight.

Staff-Sgt. Steve French, of 14 Division, confirmed that a man was killed after an altercation involving a knife near Portland Street and Queen Street West around 2:30 a.m. He was taken to hospital, where he died of his injuries.

"We have had a stabbing and it has resulted in a fatality," French told ctvtoronto.ca Saturday morning. He added that the investigation has been turned over to the Homicide Squad.

A second person reportedly suffered serious stab wounds in the incident.

Police haven't identified the victims but said they knew each other.

The south side of Queen West was cordoned off for several blocks Saturday morning as police scoured the area for clues.

No one has been taken into custody in connection with the stabbings.

Anyone with information about the incident is asked call police at 416-808-7400 or Crime Stoppers at 416-222-TIPS (8477).