Police were called out to Badger Road in Woodhouse at about 7pm last night.
Officers said a person had suffered neck injuries in an attack.
A large police cordon covering several houses and a wooded area in front were still in place this morning, more than 12 hours after the incident.
Residents claimed a young woman had been stabbed.
One man, aged 52, who has lived in Woodhosue for 20 years, said: “My son rang me and was asking what had happened as there was loads of police on the road.
“We heard a lass got stabbed but I don’t know anything else. Police just said it was a serious incident.
“It’s bad, you hear about stabbings but you don’t expect it to happen on your own doorstep.”
A 27-year-old mum added:: “We had just come back from bowling with the kids and we saw all of the blue flashing lights.
“Police were there and I saw an ambulance and two paramedic cars. The cordon in place was even bigger last night.
“It was shocking and quite scary, we locked our doors straight away.”
A man has been arrested in connection with the incident.
South Yorkshire Police has not confirmed the gender of the victim yet or what condition they are in.
Officers have not confirmed yet whether or not a stabbing has taken place either.
An officer at the scene this morning said he was not in a position to divulge any details.
We have asked the force for more details and are waiting for a reply.