A teenager was stabbed to death when rival “postcode” gangs, some armed with baseball bats and knives, fought running battles in the street after clashing at a girl's 16th birthday party.

Up to 40 youths were involved in the fight in Sheffield.

Dale Robertson was the second to die over the weekend from stab wounds. A 17-year-old was killed in Manchester on Friday night.

Emergency services were called to an address in Parson Cross, Sheffield, just after 11pm on Saturday night, after reports that an 18-year-old had been assaulted “by a number of people”.

Witnesses said that they saw the victim staggering in the street before he collapsed in a pool of blood. He was taken to hospital but died from his injuries, South Yorkshire Police said.

A youth who witnessed the fighting said: “It all started after a bit of banter and name-calling between the two gangs. One of them walked off to go home and then they all started fighting. About 40 people were involved in the fight. Some were carrying baseball bats and knives.”

A local resident, who declined to be named, added: “It is getting bad around here. You see youths on the street corner but you can't say anything.”

A 16-year-old and two 17-year-olds have been arrested. Part of the street remained cordoned off yesterday evening as police searched gardens and alleyways close to the murder scene. A group of tearful youths later arrived to place flowers at the scene.

Sheffield has a recent history of gang rivalry that has resulted in bloodshed. The fight is believed to have involved members from the city's S6 and S5 postcodes. In July a teenager, Tarek Chaiboub, 17, was shot dead outside a barber's shop in the Burnage area of Sheffield. He is believed to have been involved in the “postcode” battles. Two teenagers, aged 16 and 17, are being held on suspicion of murder.

In Manchester the 17-year-old, named as Courtney Eaton, was stabbed to death in an argument on a petrol station forecourt near his home in Salford, on Friday night.

Officers were called to the scene near a Texaco petrol station and found him lying on the pavement with a single stab wound to the stomach. The teenager, from Winton, was taken to Hope Hospital, where he died soon after.

Police said that the disturbance, which occurred soon after 11pm on Friday, involved a small number of people, but a witness said that she saw two youths fighting outside her home while a gang of up to ten others surrounded the pair.

A youth aged 17 was arrested and released on bail, Greater Manchester police said. An 18-year-old has been arrested and is being questioned by police.

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