At 6:25 a.m. Auburn officers responded to Railhead Park, at the corner of Pacific Avenue and Sacramento Street, for a report of an injured transient man.
The victim, identified as 62-year-old Steven Shelton, was transported to a local hospital where he later died from his stab wounds.
Authorities arrested 19-year-old Timothy Mason for the homicide. Auburn police believe Mason acted alone.
Police say there were no witnesses at the time of the stabbing. They say both Shelton and Mason were "known to police" but will not comment on the relationship between the two.
The investigation is ongoing and additional information will be available at a later time.
This was the second homicide in Auburn this year, the first occurred just eight days prior. Last year the city had just one murder.