A 25-year-old man is in hospital after he was stabbed near the Carholme Road Coop at about 10pm on Thursday, February 24.
Police were called to the passageway beside the Lincolnshire Co-op shop in Carholme Road, which leads to Drake Street, after reports of the stabbing.
The victim was taken to Lincoln County Hospital and treated for non life-threatening injuries.
A 40-year-old local man was arrested on suspicion of wounding a short time later and is helping police with their enquiries.
Police have cordoned off the area around the Winning Post service station on Friday morning, with an officer guarding the immediate vicinity.
The Co-op is also closed to customers and will remain closed for at least until midday on Friday, staff at the shop told The Lincolnite.
Officers are keen to speak to any witnesses who were in the area at the time, particularly a man and a woman who may have been in or near the passage when the assault took place.
The woman is thought to have blonde hair. They are not believed to be involved, but could be key witnesses.
— Update on February 26 @ 2.14pm
The 40-year-old local man has been released on conditional police bail pending further enquiries until March 31.
Police say the victim is making a good recovery and has left hospital.
Anyone with any information can call Lincolnshire Police on 0300 111 0300, quoting incident number 485 of February 24.