The Indian priest stabbed during a Sunday service says that God's providence and priestly garments saved his life.

Father Tomy Kalathoor Mathew, 48 was stabbed in the neck in a racially motivated attack on Sunday, at St Matthew's Church at Fawkner North in Melbourne, Australia.

The priest now reports from hospital that he is recovering well, according to The Christian Messenger.

'And I was in His hands,' Father Mathew said, referring to God in a letter written from hospital to family and friends.

A man allegedly approached Father Mathew on Sunday morning in the church foyer, and said: 'You are Indian, a Hindu or Muslim, you cannot say Mass...I will kill you.'

Father Mathew is from Kerala, southern India.

The pair began to argue before the man drew a kitchen knife on the priest and stabbed Father Mathew in the neck.

A woman, who didn't want to be identified, but who witnessed the stabbing, said: 'There was some shouting and lots of movement in the back of the church. I saw Father Tomy coming to approach me and he sort of waved me over. He asked if I could look at his neck. He said, 'I've just been stabbed.' As I removed some of his garment I could see quite a bit of blood.'

By Sunday evening, police had arrested a 72-year-old male suspect. He was charged on Monday morning with intentionally and recklessly causing injury, but has been released on bail until the next hearing on June 13.

The priest added in his letter: 'Hi friends, it's me, Tomy. Thanks for all your concern and support! I'm still in hospital...just to make sure all is good!' He said that the wound was not 'very deep or serious', as he had been shielded by the various layers of the priestly Mass vestments.

The 'poor guy didn't realize that', Father Mathew said.

'This is appalling behaviour and people should never be treated like this,' Melbourne archdiocesan spokesman Shane Healy said.

Father Savarimuthu Sankar, of the Delhi Catholic Archdiocese, said: 'Hate crime became a concern and it is high time for the government to initiate dialogues with other countries to prevent such crimes. Every effort should be made by the government abroad to spread the message of appreciation for others. We condemn this incident and pray for his speedy recovery.'