Detectives from the Serious Crime Taskforce have arrested one man following an aggravated burglary in Reservoir this morning.
A 25-year-old Tarneit man was arrested in St Kilda about 7.30am.
He is currently assisting police with their enquiries.
Police also located the stolen black Ford Mustang on Havelock Street, St Kilda.
Investigators believe three males wearing balaclavas and armed with knives and screwdrivers, knocked on the door of a property on Excelsior Street before forcing their way inside just after 1am.
The offenders confronted two male occupants inside and demanded cash and the keys to a black Ford Mustang car at the property.
The offenders assaulted the two males stabbing a 56-year-old man to the abdomen and bashing a 45-year-old man.
Both men received non-life threatening injuries and were conveyed to hospital.
Two offenders remain outstanding and the investigation is ongoing.
Anyone with any information is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential crime report at www.crimestoppersvic.com.au.