An accused stabber who allegedly attacked a worker on a city footpath has been granted bail - but won't be released into the community.
Lauren Darul had taken his attempt for bail to the Victorian Supreme Court after a freedom bid was denied in November due to a history of breaches.
These included 16 arrest warrants for failing to answer or appear on bail.
The 33-year-old, who has complex psychological issues, including ADHD, cognitive impairment and schizophrenia, is transitioning to become a man, the court was told.
His bail bid was approved on Wednesday by Justice Rita Incerti but only under strict conditions.
Darul must continue compulsory treatment at forensic mental health facility Thomas Embling Hospital until a bed can be found at the Royal Melbourne Hospital's psychiatric in-patient unit.
He will remain under medical staff supervision until they are satisfied his mental health is being adequately managed.
Only then can another bail application be lodged and allow him to be freed into the community after a judge deems him to not be a public safety risk.
He must also appear before a court 48 hours before being discharged from his compulsory treatment order.
Wan Lai had been walking along a Melbourne city centre footpath at 7.35am on October 2 when Darul allegedly ran up from behind and stabbed her in the upper body.
The accused then ran off, leaving Ms Lai crouched over on the side of the footpath before she was taken to hospital suffering bleeding around her lung.
Darul was arrested 90 minutes later after being tracked to his housing provider Unison, where a 10cm kitchen knife allegedly used in the attack was found.
He has been charged with recklessly and intentionally causing injury and committing an offence while on bail.
Justice Incerti said Darul's risk to the community was genuine, describing the alleged attack as "unprovoked, random and very serious".
But she said not bailing Darul would risk him losing access to stable housing and wrap-around services, halting his progress.
Unison is trying to evict him in a contested case before a tribunal.
"By granting Darul bail now, he can attempt to secure his accommodation and progress his (rehabilitation)," Justice Incerti said on Wednesday.
"This is short-term protection for the community and long-term by addressing his mental health."
During Darul's bail hearing, case worker Mary Paterson said his mental health had been deteriorating in the weeks before the stabbing.
"(He) was talking about things that weren't true; things that weren't happening ... like being the king more frequently than (he) would," Ms Paterson told the court.
Darul had for the first time acknowledged the impact substance abuse had on him since being remanded in custody, the case worker noted.
Defence barrister Julian McMahon said his client has been undergoing an attitude change and the risks could be limited by being bailed to undergo treatment at secure mental health facilities.
But crown prosecutor Richard Pirrie said the accused had only started improving after engaging with support services in remand following his arrest.
Lifeline 13 11 14
beyondblue 1300 22 4636
