Just before 1:30 a.m., police were called to the intersection of Carthage and Gulf Streets in Sanford. There they found 20-year-old Paul David Johnson Jr., of Sanford, with a stab wound to the back.
Johnson was taken to Central Carolina Hospital, where he later died.
Nineteen-year-old Angel Ann Kersey, of Lillington, and 29-year-old John Mark Legg III, of Sanford, were also injured during the dispute.
Officers arrested 31-year-old Lee Aaron Matthews, of Sanford, around 8: 30 a.m. Monday.
Officials said the altercation started at the Prince Downtown Motel, which is where Matthews resides.
Officials believe Matthews killed Johnson and stabbed Kersey in the chest. He is charged with one count of murder and one count of assault with a deadly weapon with intent to kill. Matthews is being held in the Lee County Jail without bond.
Kersey was taken to Central Carolina Hospital and Legg was transported to UNC Hospital for further treatment. Their conditions are unknown.