SAN DIEGO — A predawn argument between two transients in a coastal neighborhood near Agua Hedionda Lagoon led Wednesday to a stabbing that left one of them dead and the other under arrest on suspicion of murder.

Patrol officers responding to a report of a fight between two men in the 800 block of Tamarack Avenue in Carlsbad found the 35-year-old victim lying mortally wounded in the street shortly before 1:30 a.m., according to police.

Medics took the man to a hospital, where he was pronounced dead, Lt. Greg Koran said. The victim's name was withheld pending family notification.

Just before 5 a.m., officers took the alleged assailant, Jay Terry, 36, into custody the 100 block of South Pacific Street in Oceanside.

"Investigators believe the stabbing was the result of a verbal altercation between Terry and the victim, who were known to each other," Koran said.

The lieutenant did not disclose what led them to identify Terry as the suspected killer.

A woman with Terry at the time of his arrest, 35-year-old Lee Ann Borrell, was taken into custody on suspicion of narcotics crimes and identity theft.

"None of the involved parties have a current (home) address," Koran said.