The son of former Australian boxing champion Barry Michael has been charged with murder following the fatal stabbing of a young man outside a pub in Melbourne's inner west.

Zac Swettenham, 37, appeared before the Melbourne Magistrates' Court via audiovisual link after being accused of killing a 25-year-old South Yarra man during an altercation near the Courthouse Hotel in Footscray. Police allege the incident unfolded on Nicholson Street on Sunday evening before spilling into the street behind the venue.

Emergency services were called to the area about 7.45pm, where they found the victim suffering serious injuries. Despite efforts by paramedics, the man died at the scene. Investigators later launched a homicide investigation to determine the circumstances surrounding the attack.

Detectives arrested Swettenham at Yarraville Railway Station at approximately 8.30pm on Monday, before charging him with murder. Police believe the accused and the victim were known to each other prior to the fatal encounter.

During Tuesday's court appearance, Swettenham did not apply for bail. The court heard that he was currently experiencing several mental health conditions, including psychosis, akathisia and schizophrenia. His legal representative requested that he receive medical attention while in custody.

Magistrate Brett Sonnett remanded Swettenham in custody and adjourned the matter until October 13, when he is expected to reappear before the court.

The charges have devastated Swettenham's father, Barry Michael, who held the IBF super featherweight world title between 1985 and 1987 and later became a respected boxing commentator.

Speaking after learning of the allegations, Michael described the situation as a "nightmare" and expressed sympathy for the victim's family.

"I'm just devastated for the family of this 25-year-old. It's just horrible to hear," he said.

"I'm exhausted. I'm mentally drained. I can't believe this has happened."

Michael revealed that his son had struggled with ice addiction, homelessness and ongoing mental health challenges in recent years. He said he had tried to support him through difficult periods but had feared that tragedy might eventually occur.

Local business owners near the crime scene also expressed concerns about increasing levels of violence and anti-social behaviour in the Footscray area.

The investigation remains ongoing, and police are continuing to appeal for anyone who witnessed the incident or who may have relevant CCTV or dashcam footage to contact Crime Stoppers.

As the case progresses through the courts, the accused remains before the justice system, and no findings of guilt have been made. The allegations against Swettenham will be tested in future legal proceedings.