Distressed officers are hoping their beloved veteran police dog will not die after being stabbed in the neck by an alleged car thief.

Officers were called to a terrace in Gordon Park, in Brisbane's north, about 1:30am after a suspected stolen car was spotted in the area.

When police arrived, three people were arrested at the scene, but two men, aged 21 and 24, fled.

Five people have now been arrested over the incident. ( Supplied: Queensland Police Service )

Police dog Kaos and his handler ran after the pair and tracked them down 15 minutes later, hiding out two streets away.

During the arrest, one of the men allegedly stabbed Kaos in the neck with a 12-centimetre knife, making a large wound.

The seven-year-old German shepherd was kept alive at the scene by his long-term handler, who is said to be extremely upset over the incident.

Kaos underwent surgery at a vet clinic and was in a stable but critical condition.

On Sunday afternoon, a Queensland Police spokesperson said Kaos was out of surgery and "recovering nicely".

"He is up and about, however he remains in a serious condition," the spokesperson said.

"All support is given to his handler at this time."

Senior Sergeant Sean Baxendell said the wound was "significant".

"We are hopeful he will make a recovery because he is a very valuable asset to both the Queensland Police Service and the Queensland community as a whole," he said.

Senior Sergeant Baxendell said Kaos had a close bond with his handler who he had been with since he was a puppy.

The two are inseparable and live together.

"[His handler] provided medical first aid, saving the dog's life," he said.

Senior Sergeant Baxendell said Kaos and his handler were inseparable. ( ABC News: Talissa Siganto )

"They are very much a part of the family so it is extremely upsetting.

"Our thoughts are with the handler."

A 21-year-old Milton man and a 24-year-old Enoggera man have both been charged with one count each of serious animal cruelty, unlawful use of a motor vehicle, serious assault police and obstruct police.

They were both denied bail and are expected to appear at the Pine Rivers Magistrates Court on Monday.

A 25-year-old Logan Village woman, 22-year-old Wynnum man, and 29-year-old Manly West woman have all been charged with unlawful use of a motor vehicle.

All three are expected to appear at the Pine Rivers Magistrates Court on February 17.