Friends have paid tribute to a 17-year-old boy who was stabbed to death at a youth basketball game in Melbourne.

Bless Mulukwat Akoch was killed just before 6pm at the Eagle Stadium in Werribee on Friday night and the arena evacuated.

The teenager was rushed to hospital in a critical condition but was unable to be saved.

A 15-year-old boy who was arrested after the stabbing has been released without charge with investigations ongoing.

Friends of Bless said he was 'joking around' just hours before the fatal attack.

'He was a nice guy; of course there's people who didn't like him, or he didn't like, but we didn't think it'd get to this extent where someone's life would be taken,' friend Jonathan Bonsang told the Herald Sun.

Another mate described the teen as a 'good soul' who was 'destined for greatness', and said she and her friends were heartbroken by the news.

'He never failed to make others laugh, brightening each room with his smile. He never backed down from a challenge and always took them head on,' she said.

One friend, Epz Solomona, farewelled Bless in a heartfelt Instagram post.

'Since the beginning you embraced me. You taught me everything, the good, the bad, the ugly,' he wrote.

'Before I signed any contract ever in my life, I signed myself to you, the streets and I promise too represent you forever.'

Bless was in his final year of school at the Good News Lutheran College.

Victoria Police confirmed on Saturday the other teenager had been released without charge pending further inquiries.

The Eagle Stadium has been closed since the incident as police continue their investigations at the scene.

Emergency services arrived at the basketball courts at around 5.50pm.

One witness, whose daughter was playing a basketball game at the venue, said he saw a man run out of the stadium holding a knife.

'I turned and saw a man bolting with a knife in his hand, it was really scary,' he earlier told the publication.

'I think there needs to be more security at the courts as there have been a lot of fights here and in the area in recent months.'

Anyone with information on the incident is asked to Crime Stoppers on 1800 333 000 or via their website.