A 58-year-old woman from Main Street was walking two dogs, a Chihuahua and a Jack Russell, along Barnes Street when the incident occurred at about 7.30pm.

Stawell Police Sergeant Bill Alford said another two dogs, a black and white Bull Terrier cross and a dark brindle coloured Staffordshire Terrier ran towards the woman while she was walking her two dogs.

"Seeing them running towards her, the woman has panicked and thought that the dogs were going to attack her dogs, so she picked both her dogs up in her arms just as both of the other dogs launched themselves at her," he said.

"The 'Staffy' has grabbed the woman on the right arm in a vice like grip, punctured her skin and made a substantial wound in the top of her wrist and a puncture mark underneath, which has caused quite a bit of bleeding."

The woman's elderly 14 year old Jack Russell dog was also bitten in the attack. The dog sustained injuries to its head and an ear.

Sgt Alford said a man heard the screams of the visibly distressed woman as she tried to fend the dogs off. He came to her rescue and pushed the dogs away.

"The dogs ran off. They were seen running off by another woman who chased them and caught them in Napier Street," he said.

"That woman then notified police."

The woman injured in the attack was taken to Stawell Hospital where she was treated for the wounds she had on her wrist. Her elderly dog was taken to the Stawell Veterinary Clinic for treatment and has since recovered.

"I was very concerned that the dog, because of its age and the shock that it was in, that it may not have recovered," Sgt Alford said.

The two dogs were handed to Northern Grampians Shire Council's Local Laws Department. Council has the power to prosecute the owner of the dogs under the Domestic Animals Act 1994.

The owner could face charges including allowing a dog to wander, allowing a dog to attack, to rush a person and allowing the dog to bite.

"The council is now looking at prosecuting the owner of these dogs," Sgt Alford said.

"Certainly all of those matters will be looked at by the shire," Sgt Alford said.

Sgt Alford said the incident highlighted the importance of responsible animal ownership.

"I think owners have to be more responsible for their animals," he said.

"If they aren't at home they have to make sure that their dogs are housed properly so the dogs cannot escape.

"It is up to the owners of the dog to ensure that the dog is safe when they aren't there, that the dog can't get out and roam the streets."