A man has been found dead with multiple stab wounds at a home.

The body was found on Kembla St, Croydon Park in southwest Sydney about 5pm on Monday.

Police believe the man was in his 50s, although he has not yet been formally identified.

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A 32-year-old man was arrested at the scene.

Superintendent Christine McDonald said police are treating the incident as a homicide and believe it may have been a drug deal that went horribly wrong.

She described it as a gruesome crime, adding that the victim’s injuries were horrific.

It’s still unclear who lives at the property or who attended there this afternoon.

McDonald said the stabbing is not believed to be domestic-related or gang-related.

A crime scene has been established and investigations are ongoing.

Anyone with any information has been urged to come forward.