Two people are in hospital with serious injuries after a double stabbing in the city's East Danforth neighbourhood early Tuesday morning.

Toronto police say at about 12:25 a.m., an altercation involving three people was reported outside Pegasus, a bar near Danforth and Victoria Park avenues. Two people suffered stab wounds and were taken to hospital and the suspect fled the scene, police say.

No weapon was recovered and police have no suspect description at this time. Investigators were speaking with witnesses Tuesday morning and forensics was called to the scene.