An 18-year-old woman has died and seven other people have been injured in a mass stabbing at a remote indigenous community in Canada, police say.

The suspect also died in Thursday's attack at a First Nations community in the province of Manitoba, according to the Royal Canadian Mounted Police (RCMP).

The incident took place in Hollow Water First Nation, about 200km (124 miles) north-east of the city of Winnipeg.

Police said the suspect was fleeing the scene when he died in a vehicle collision with an RCMP policewoman, who was critically injured.

The family of one victim said he was awoken in the middle of the night, and was stabbed in the torso.

Investigators said the woman killed was the sister of the suspect, and that the man was previously known to police.

In a news conference, the federal police force said that officers were on site at the Hollow Water First Nation, and were still going house to house to make sure that the community is safe and also ensuring that there are no other victims.

They stated, Our sincere condolences to everyone within the community of Hollow Water First Nation and to everyone who has been affected by this senseless act of violence, the RCMP said.

Authorities received the initial call about the incident at 3:45 am local time, after reports of an assault had occurred about 30 minutes earlier. Upon arrival, they discovered multiple victims across two crime scenes.

RCMP major crimes unit Supt Rob Lasson declined to share any suspected motive for the attack, but said the victims were all known to each other in the community.

The suspect, Tyrone Simard, 26, fled the scene in a stolen vehicle and collided with the police vehicle while attempting to escape.

The policewoman, whose name has not yet been released, was taken to the hospital with injuries that were critical but not life-threatening and is expected to recover fully.

Manitoba Premier Wab Kinew praised the police officer for her bravery, stating, She stopped a man on a rampage. Chief of Hollow Water First Nation, Larry Barker, emotionally urged the community to support one another during this difficult time.

The community, which has a population of a few hundred, is entirely shaken by the incident.

The attack coincidentally occurred on the third anniversary of a mass stabbing in James Smith Cree Nation and Weldon, Saskatchewan, highlighting an alarming trend of similar violent incidents across indigenous communities.