Toronto police Chief Mark Saunders says a 27-year-old suspect has been arrested after two Canadian Forces members were stabbed at recruitment centre in uptown Toronto.

At press conference on Monday, Saunders said the attack occurred at about 3:30 p.m., when a man produced a knife and lashed out at the uniformed Canadian Forces member behind the counter at 4900 Yonge St., near Sheppard Avenue in North York.

"This male then proceeded to walk towards the rear where other employees in uniform were at this time," said Saunders.

"Through the training of the Canadian Forces members they were able to subdue the male, but in the process another male was stabbed."

Saunders said the two Canadian Forces members injured in the incident are in non-life threatening condition.

"We're very fortunate that Canadian Forces, through their training, responded, reacted, and as a result, I can tell you that had they not reacted the chances of this being much more severe, much more serious definitely would've occurred," he said.

Saunders said the suspect made comments while in custody before police arrived that caused "concern," but did not disclose any further details.

He added that Toronto police are investigating the incident in conjunction with the RCMP, Ontario Provincial Police, and he has contacted CSIS.

RCMP said it was an "isolated incident" and there is no risk to the public.

A spokesperson for the Department of National Defence said "no suspicious activity" was observed in the area by Canadian Forces members prior to the attack.

Saunders said terrorism is one of the possible motives that they are "strongly looking at at this point in time," but it's early in the investigation.

Anyone who was in the area at the time or who has information about the incident is being asked to contact police.