The hotel room where Vatthana Chounlamountry was arrested.

The hotel room where Vatthana Chounlamountry was arrested. Photo: Matt Gallant/Ten News

A man wanted in relation to a fatal stabbing earlier this week has been arrested following a dramatic siege at a hotel in Melbourne’s north-west.

Armoured cars and other police vehicles descended on the Glengala Hotel, in Glengala Road, Sunshine, early on Saturday morning to arrest Vatthana Chounlamountry.

The 30-year-old St Albans man was wanted over the stabbing death of a 22-year-old man in his St Albans home on Tuesday morning.

“This morning we received credible information that the suspect wanted for the murder that happened in Sunshine… was staying in this hotel,” Detective Superintendent Alan Byrnes said.

“Negotiators worked hard and had some children who were inside the room released and later on the suspect was forcibly removed.”

Superintendent Byrnes said the six-month-old and four-year-old children were released uninjured just after midday and were with relatives.

Special Operations Group members forcibly removed Mr Chounlamountry and a 24-year-old woman from the room about 12.30pm.

Both were arrested and taken to Footscray Hospital under police guard and will be interviewed by police later on Saturday.

It was earlier reported that police believed Mr Chounlamountry fatally stabbed the victim, who was known to him, on Tuesday at 4.45am. He was believed to have fled the scene in a black 2008 Mazda CX7.

Police believed Mr Chounlamountry may have forced his way into the house, which the man shared with his mother and uncle. Up to six members of the family were in the house at the time of the stabbing.

The victim died at Sunshine Hospital hours after he was stabbed.