An individual accused of a stabbing incident on a city sidewalk has been granted bail, yet will not be released into the public sphere.

Lauren Darul sought bail from the Victorian Supreme Court after a previous attempt was rejected in November due to his record of non-compliance.

This record includes 16 warrants issued for his failure to appear in court or respond to bail conditions.

Authorities apprehended Darul 90 minutes post-incident at his residence through Unison, where they reportedly discovered a 10cm kitchen knife believed to have been used in the attack.

He faces charges for both reckless and intentional injury, as well as committing an offence while on bail.

Justice Incerti expressed concern over Darul’s potential threat to public safety, labeling the alleged incident as “unprovoked, random, and very serious.”

But she said not bailing Darul would risk him losing access to stable housing and wrap-around services, halting his progress.

Unison is trying to evict him in a contested case before a tribunal.

“By granting Darul bail now, he can attempt to secure his accommodation and progress his (rehabilitation),” Justice Incerti said.

“This is short-term protection for the community and long-term by addressing his mental health.”

During Darul’s bail hearing, case worker Mary Paterson said his mental health had been deteriorating in the weeks before the stabbing.

“(He) was talking about things that weren’t true; things that weren’t happening … like being the king more frequently than (he) would,” Paterson told the court.

Darul had for the first time acknowledged the impact substance abuse had on him since being remanded in custody, the case worker noted.

Defence barrister Julian McMahon said his client has been undergoing an attitude change and the risks could be limited by being bailed to undergo treatment at secure mental health facilities.

But crown prosecutor Richard Pirrie said the accused had only started improving after engaging with support services in remand following his arrest.