Teenage girl charged with murder of 10-year-old after stabbing at ...

A 17-year-old girl charged with murder after the fatal stabbing of a 10-year-old girl in a suburb of Lake Macquarie in New South Wales will remain in custody.

Emergency services were called to a home at Boolaroo just before 4pm on Monday and found the younger girl with multiple stab wounds.

Police believe the girls are known to each other. 

The teenager was arrested at the scene and taken to Belmont Police Station. 

The 10-year-old girl was treated by ambulance paramedics but died at the scene.

A 17-year-old girl was arrested and taken to Belmont Police Station.(ABC News: Lillian Watkins)

NSW Police Minister Yasmin Catley said local police were being assisted by the state crime command and the homicide squad as they investigated the death.

"There's an active investigation underway. The events of what happened in Lake Macquarie are absolutely horrific," she said.

"Our thoughts are with family and friends and of course with the whole community.

"To have any death is felt by the community, but such a young child … it's really sad."

Police Minister Yasmin Cately says the NSW government is reviewing the laws around weapons offences.(ABC News)

Ms Catley said police would share information as it became available.

She said the NSW government was reviewing sentencing laws around weapon offences, including "what other jurisdictions are doing".

An Education Department spokesperson said their thoughts are with those affected by the incident. 

"Extra counselling support is being offered at nearby schools and to all impacted staff and students," they said.

The matter was briefly mentioned in the Broadmeadow Children's court in Newcastle, in the absence of the 17-year-old.

No bail application was made and the matter has been adjourned until June.