Police said the stabbing occurred after an argument broke out between two women, aged 25 and 33, at Peden's Hotel about 1am Sunday.

As a result, the 33-year-old woman was told to leave the pub.

Police said a short time later, she returned as the 25-year-old woman was leaving the building.

The 25-year-old was then stabbed multiple times in her face and back.

Bystanders flagged down a passing police vehicle, while the injured woman was taken to John Hunter Hospital for treatment. She was released the following day.

Following extensive inquiries, a 33-year-old woman attended Cessnock Police Station about 5pm Thursday, where she was arrested.

She was charged with wounding with intent to cause grievous bodily harm.

She was refused bail to appear at Maitland Local Court on Friday.