Police and paramedics were called to Cambridge Avenue in Raymond Terrace at around 2am today, acting on reports a man had been found with serious head injuries.
There a 38-year-old man was treated by paramedics but died at the scene.
He had early been in an argument when he was assaulted, police were told.
A 29-year-old man was arrested nearby.
He was taken to the local police station, before being transferred to Maitland Hospital for assessment.
A crime scene has been established but no charges have yet been laid.
Anyone who may have witnessed the incident or has dashcam footage is urged to contact Crime Stoppers on 1800 333 000.
