A Wangaratta man could be facing an attempted murder charge after it's alleged he stabbed a Speed Street neighbour multiple times causing severe cuts to her face, blood loss and a partially severed ear.

The 28-year-old faced Wangaratta Magistrates’ Court on Thursday applying for bail, facing seven charges relating to the alleged Wangaratta stabbing of his neighbour, a 53-year-old woman.

The court heard about 5am on 15 April, a witness living in a nearby unit called police saying a man had been behaving erratically within the housing complex and jumping fences.

Just after 7:20am the accused returned to the complex and allegedly went to his neighbour’s unit adjacent to his.

An alleged dispute broke out between them before the man allegedly attacked the woman with a knife in her own lounge room.

He allegedly stabbed her a number of times, causing severe lacerations on her face, arm and feet, partially severed ear, and skull and neck fractures.

The same witness who had called police earlier heard the incident and allegedly pulled the man off the woman.

The woman gave the man her car keys and cigarettes in an attempt to calm him down, before he left.

Just after 9am the accused was located shirtless some two kilometres away on Weir Street, where police arrested him.

The accused told the court he attempted to jump a barbed wire fence to escape arrest and injured his wrist.

In his police interview, the man allegedly told police he couldn’t remember anything about the incident, only waking up in the bush, swimming, before being arrested.

Wangaratta Senior Constable Noni Patton said as of Thursday morning, the woman was likely to survive her injuries and was conscious and speaking at The Alfred Hospital.

Sen Const Patton said while the investigation was in its infancy, police would consider charging the man with attempted murder.

A significant amount of blood was allegedly inside the unit and on the ground nearby.

Sen Const Patton said it was not yet known what the original dispute between the two was over.

The accused, representing himself, told the court it was his and everyone’s “god given right” to feel safe and if he couldn’t make bail, requested an hour outside to get some fresh air and have a smoke “to revitalise the brain”.

He could be heard burping during the reading of the prosecution’s summary and said he “deserved better” than to have an intervention order placed on him for the safety of his neighbour.

Both the accused and the victim had been living in the Beyond Housing units for six months.

Sen Const Patton said the housing organisation had received a number of complaints regarding “threatening” behaviour from the accused in recent months and following the alleged stabbing, they planned to evict the man.

Appearing as a friend of the court, lawyer Geoff Clancy said the man was diagnosed with schizophrenia and he urgently needed to see a doctor and be medicated.

“I’m not sure he really understands the situation here,” he said.

Sen Const Patton said the man told police he had been using methylamphetamine daily.

The court heard the man was charged with an intervention order breach when he went to collect possessions from his grandmother's home in Eldorado, where he had been living before moving to Speed Street

His possessions included a samurai sword, a katana and a bow, which the court heard made his grandmother fearful.

He was also facing a charge of drug driving near Myrtleford on 19 November last year.

Magistrate Ian Watkins refused bail, and his request for “fresh air”.

“He is an unacceptable risk to endanger the safety and welfare of persons,” he said.

The matter was adjourned for committal mention on 30 July at Wangaratta Magistrates’ Court.