A 24-year-old woman has been charged after allegedly threatening another woman with a knife and demanding her dog and phone in Phillip.

Police say the woman approached the victim outside Grand Central Towers about 10.45pm on Wednesday and allegedly demanded she hand over her dog and phone before threatening her with a knife.

The victim was chased for a short distance before the alleged offender fled.

Police later found the 24-year-old woman nearby and arrested her. A knife was also found in the area.

She faced the ACT Magistrates Court on Thursday charged with possessing a weapon with intent.

Police are seeking witnesses to the incident.

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