Two men have been arrested over the stabbing death of a tradie outside a milk bar in Melbourne.

A 20-year-old and 18-year-old were arrested at the same house in Doveton at about midday and are currently being questioned by police.

Sadiq Husseini, 24, was allegedly set upon as he walked out of a Doveton milk bar after he had tried on a new striped beanie about 9.20pm last night.

Sadiq Husseini, 24, was captured laughing with his mates just minutes before he died. Picture: Supplied (Nine)

Mr Husseini collapsed in front of the milk bar employee and could not be saved. Picture: Facebook (Nine)

CCTV footage shows the young tradie laughing with his mates moments before the alleged attack.

An employee at the milk bar, Igor Sekulic, said Mr Husseini initially had "no idea" he'd been stabbed.

"I was closing up the shop and I saw four people fighting, two seriously," Mr Sekulic told reporters.

"Next thing you know, he was stabbed and bleeding.

A milk bar worker, who saw the assault, said the 24-year-old victim stood up immediately after the attack in Doveton last night. Picture: AAP (Nine)

Witnesses told 9NEWS the victim and suspects were involved in a heated argument before the fatal stabbing. Picture: 9NEWS (Nine)

"But he didn’t know he’d been stabbed.

"Only after I told him that he was bleeding, the adrenaline faded away or something then he realised and he collapsed.

"He was bleeding from the right side of the abdomen."

Mr Husseini was treated by paramedics but died at the scene.

Police are investigating the cause of a fight between a group of men at a Melbourne milk bar overnight that resulted in a stabbing. Picture: 9NEWS. (Nine)

Forensic detectives bag evidence at the scene in Doveton. Picture: AAP (Nine)

Homicide detectives are trying to piece together what happened and have two people in custody.

Witnesses told 9NEWS the victim and suspects were involved in a heated argument before the fatal stabbing.

"They were yelling," a witness claims.

"They were just going off at each other, shoving each other.

"They were quite violent but I didn’t want to break it up because I didn't want to get hurt.

The victim was treated at the scene of the Doveton store but died before he could be taken to hospital. Picture: 9NEWS. (9NEWS)

No arrests have been made over the assault, however authorities are investigating the scuffle. Picture: 9NEWS. (9NEWS)

"I don't want to live in this area anymore, it's a bit traumatising."

A strip of shops on Linden Place remains a designated crime scene.