A man has been hospitalised with severed fingers and a slashed leg after being attacked with a machete in a brawl in Melbourne.

Police said the serious assault took place in Rosebud West in the Mornington Peninsula on Tuesday night, according to Daily Mail.

Armed Crime Squad detectives believe a car with a group of people arrived at a property near Kingfisher Road about 7pm.

An argument broke out in the street between two groups of people, believed to know each other, and one man received serious injuries to his fingers and knee.

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The man was airlifted to Royal Melbourne Hospital where he remains in a serious but stable condition, The Age reported.

Police are yet to speak to the man in hospital.

A second man was treated at a medical clinic in Rosebud after suffering a wound to his leg, believed to be a gunshot wound, in the same incident.

He was advised to go to hospital but declined an ambulance and left the clinic.

Neighbour Bec Waters told 7 News: "I asked if he was alright because I'd seen so much blood , it was terrifying really."

"He said that he was missing fingers, I saw a lot of blood there, and I saw his knee and it was ghastly."

Police want to speak to the driver of a dark-coloured Commodore seen at the incident to assist with their enquiries.

No arrests have been made at this stage and the investigation is ongoing.

Anyone with information is urged to contact Crime Stoppers on 1800 333 000.