The incident occurred in Neve Sha'anan, a neighborhood in south Tel Aviv with a large Eritrean population, Ynetnews.com reported Saturday.
Police said the incident occurred about 11 p.m. Friday when the Eritrean man met another foreign national.
An argument began and became violent. The other man pulled a knife and stabbed the victim in the abdomen several times.
An eyewitness described the assailant to police, who arrested a suspect a few minutes later and recovered a knife.
The victim was taken to a Tel Aviv hospital where he was pronounced dead.