Brian Takahashi, seen in an undated photo, was stabbed to death on New Year's Day.

A man charged after a fatal stabbing in downtown Toronto on New Year's Day has been remanded in custody.

Luke Heath, 27, of Toronto, was arrested Sunday afternoon and charged with first-degree murder in the death of Brian Takahashi and the attempted murder of another man.

Takahashi, 20, was stabbed in the chest early Saturday morning. The slaying happened barely two hours into the new year.

Takahashi and some friends were on Queen Street West, near Bathurst Street, when they were approached by a group with a video camera.

According to police, security camera images show Heath and several others approaching the group with Takahashi.

"There's a couple of other people with him — one of which has a video camera … and then there's two females also that are with that group," homicide Det. David Ecklund told CBC News.

When the groups connected, there was an argument, he said.

"We don't know 100 per cent," what led to the attack, Ecklund said. "What we do know is that [the suspect] does approach the group. There is a verbal altercation. And he later returns and continues that altercation."

Takahashi, who police say lived near Milton, west of Toronto, and a 19-year-old friend were stabbed in an alleyway near Queen Street West and Portland Street at 2:25 a.m. They were rushed to hospital, where Takahashi died.

On Sunday, police told the media they had a clear images of the suspect and suggested he contact a lawyer and turn himself in to police.

At around 5 p.m. on Sunday afternoon, Heath arrived at 14 Division with his lawyer and surrendered to police.

Heath will remain in custody until his next court appearance on Jan. 25.