A woman is facing terrorism charges after stabbing a father as he slept in his home in Melbourne's north.

The accused had arrived from Bangladesh just ten days ago, but police say she was inspired by Islamic State when she attacked the man in front of his young daughter at his Mill Park home.

Australian Federal Police Acting Deputy Commissioner National Security Ian McCartney said: "the investigation of the matter highlights the threat in relation to terrorism in Australia is real and its ongoing".

Roger Solomon, a 56-year-old nurse, was asleep with his five-year-old daughter yesterday when he was savagely attacked, police say.

Roger Solomon was asleep with his five-year-old daughter he was savagely attacked. Source: 7 News

He was stabbed in the neck with a knife from his own kitchen, allegedly by an international student who he had volunteered to take in.

One neighbour said: "its extremely sad for a family who so keen to give students an Australian experience and so welcoming to so many students".

Another said: "there just an average normal family, he's a very nice guy, very friendly".

Momena Shoma fronted court charged with committing an act of terror. Source: 7 News

Police at the home on Saturday. Source: 7 News

Witnesses too afraid to speak on camera told 7 News they found Mr Solomon standing in his garage calling for help, covered in blood.

One neighbour rang Triple 0 as another ran inside to find the alleged attacker.

Acting Deputy Commissioner McCartney said the situation was an isolated incident.

A 24-year-old woman has been charged with the stabbing of a man in Melbourne. Source: 7 News

"We'll allege this was stand alone, Islamic State inspire and designed to cause harm to the victorian community," he said.

Today 24-year-old Momena Shoma fronted court charged with committing an act of terror.

Acting Deputy Commissioner Ross Guenther said: "I'm led to believe she was wearing a black burqa".

"We know things like Inspire magazine and some of the online publications from Al Qaeda and isis can be a source of inspiration," he said.

The Bangladeshi national arrived in Australia on February 1 on a student visa and planned to study at La Trobe University.

She was flanked by guards as she sat motionless in the Melbourne Magistrate's court on Saturday and didn't apply for bail.

Police investigate at the scene of an alleged ISIS-inspired stabbing of a 56-year-old man. Source: 7 News/ Twitter

On Saturday police from the joint counter terrorism team returned to raid the home and another in nearby Bundoora where the alleged attacker had previously stayed, looking for anything linking the attack to known extremist organisations.

If convicted Shoma could face life behind bars.

She is due back in court on May 2.

Mr Solomon will undergo surgery at Royal Melbourne Hospital for non-life threatening injuries.