shouted phrases adding to the belief it was ISIS inspired

Local residents barricaded victim and fended off Mr Khan with timber

Grandfather Wayne Greenhalgh, 59, was taken to Liverpool

A 22-year-old man allegedly inspired by ISIS has been charged with terrorism and attempted murder, after allegedly stabbing a man in a Western Sydney park.

Grandfather Wayne Greenhalgh, 59, was on his daily walk in a reserve in Minto on Saturday afternoon when he was allegedly stabbed by Ihsas Khan, who was shouting 'Allahu Akbar, this is a good day to die'.

After receiving multiple stab wounds to his hands and body Mr Greenhalgh escaped to a nearby property where he was taken into an adjoining hairdressing salon by the owner.

A local resident said she watched in horror as property owner Duyen Phan barricaded the entrance as Mr Khan, 22, allegedly attempted to smash his way inside before local heroes intervened.

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A man, 22, has been charged for attempted murder and committing a Terrorist Act in Minto, Sydney. It is alleged he stabbed a 59-year-old man in a park before the victim escaped and ran to a nearby property (pictured)

The bloodied victim was taken into the hairdressing salon (pictured) alongside the house by the owners of the property

Wayne Greenhalgh was the victim of the savage attack and remains in Liverpool Hospital

On Sunday evening, Mr Greenhalgh was in a stable condition

Sivei Ah Chong, 43, confronted Mr Khan and repeatedly bashed him over the head with a plank of wood, stopping him from getting to Mr Greenhalgh, according to The Daily Telegraph.

When the police arrived Mr Khan attempted to allegedly stab an officer through a car window before he was subdued and taken into custody.

Paramedics treated Mr Greenhalgh at the scene before airlifting him to Liverpool Hospital in a serious condition.

About 5.30pm on Sunday, a spokesman for the hospital told Daily Mail Australia Mr Greenhalgh's condition was stable.

He underwent six hours of surgery for his injuries, which included a punctured lung and deep laceration, but lost several fingers, according to reports.

A witness told Seven News that Mr Khan was 'running around shouting 'Allahu Akbar, this is a good day to die' as he looked to break into the salon after the attack.

Police pointing tasers at the alleged attacker during a horrifying attempted murder in Minto

The victim escaped to a nearby hairdressing salon where he sought help after he was stabbed on Ohlfsen Road, Minto

The reports of him shouting Islamic phrases and words have added to the belief the incident was 'inspired by ISIS', with Deputy Commissioner Catherine Burn saying the attack was deliberate.

'We will be alleging before court that this was an act that was inspired by ISIS, it was a deliberate act yesterday, it resulted in a person receiving extremely serious injuries.

'We will allege that he set out to do something yesterday, how long he had been planning this, we don't know.

'This is the new face of terrorism, this is the new face of what we deal with.'

Deputy Commissioner Ms Burn said 'This is the new face of terrorism,' at a press conference

Police arresting the attacker on Saturday who will appear in Parramatta Bail court on Sunday

She said Mr Khan may have been trying to lure police to the scene to attack them since he had no known ties to the victim.

'It may well have been, we know that this person has strong extremist beliefs, inspired by ISIS, what made him actually act yesterday we don't know,' she said.

He was known to police.

The large 'hunting' knife used during the attack was taken for forensic examination.

Witnesses reported Mr Khan was waiting in the reserve for up to 10 minutes before Mr Greenhalgh arrived and said they heard him shout in Arabic during and after the attack, according to the Sydney Morning Herald.

In the weeks leading up to the attack, his behaviour had become increasingly erratic and bizarre, residents in the area of the attack said.

Prime Minister Malcolm Turnbull echoed Ms Burn's view that the attack was the 'new face' of terrorism and authorities had to evolve to deal with it.

He said the national terror level would remain the same.

The attack occurred at Ohlfsen Road, in Minto, Sydney's west on Saturday afternoon

Police taped off much of the area along Ohlfsen Road following the incident

Residents in Minto watch on at the scene of the attack after police and ambulance services arrived

Federal Attorney-General George Brandis praised the efforts of local community and police for their swift action.

'The brave citizens of Sydney, who yesterday afternoon witnessed this attack going on before their very eyes and intervened at risk to their safety - and potentially their lives - to save the life of the victim, are an inspiration to us all,' Mr Brandis told reporters in Brisbane on Sunday.

'It may very well be but for the bravery of those citizens to intervene the victim's life would have been lost.'

The Joint Counter Terrorism Team is currently investigating the incident.

Mr Khan chose not to appear in Parramatta Bail Court on Sunday and was charged with committing a terrorist act and attempted murder.

He was refused bail.

He's expected to appear in Sydney's Central Court on Wednesday morning.

The knife-wielding man allegedly attempted to stab an arriving officer through the car window