Far North Area Commander Inspector Wendy Robilliard said two officers arrived at the scene and spoke to three men who had been seen putting petrol into a stolen car.
"One of the officers went to arrest one of the men, when the man allegedly struck him on the head," she said.
The police officer tried to restrain the offender, while a second police officer tried to assist and stop the other two offenders from intervening.
"The offender managed to break free from the injured officer, who realised he had been stabbed." The elderly neighbour, who did not want to be identified, said she didn't realise that it was a police officer who had been injured.
She said there were a lot of people standing on verandas outside neighbouring homes at the time of the attack.
This morning police were canvassing the normally peaceful neighbourhood for information.
She said the incident was marked by a lot of "gruff shouting and arguing".
While the street was normally a peaceful neighbourhood the residents of the house where the incident unfolded had a reputation as a party house.
The injured officer was taken to Kaitaia Hospital and then transferred to Whangarei Hospital for further treatment.
He was due to be discharged from hospital today.
A 17-year-old had since been arrested for breaching bail at a Kaitaia address.
"Police are now focusing on locating the man who assaulted the police officer," Ms Robilliard said.
A scene examination of the area was now completed and the stolen vehicle taken for forensic examination.
