The woman charged with the terrifying Melbourne CBD stabbing has applied for bail, after police confirmed she was on bail when she allegedly stabbed a stranger in broad daylight.

Sushi chef Wan Lai, 36, was on her way to work around 7:40am on October 2 when a woman allegedly attacked her with a knife, stabbing her in the chest before fleeing through Little Bourke Street.

The disturbing CCTV vision, first aired by 7News, shows the 32-year-old alleged attacker bolting from the scene with the knife still in her hand as Ms Lai collapsed, fighting for her life.

The alleged offender, identified by News.com.au as Lauren Darul, 32, was on bail for other offences at the time of the attack, police have confirmed.

Darul has now been charged with intentionally causing injury and committing an in

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