The 14-year-old was arrested after attending the Felltimber campus of the Wodonga Middle Years school on Monday.

The boy has faced court following the incident before being bailed, with authorities assisting the youth.

The teenager had been banned from going near the alleged victim.

There are concerns the teenager, who is not a student, was fixated on the victim.

The youth returned to court on Wednesday, where a Department of Families, Fairness and Housing employee told magistrate Peter Dunn the accused boy was in secure welfare.

Mr Dunn said the agency was able to put youths in various residences, including motels, and was concerned he was in secure welfare despite being on bail.

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"At the moment you're effectively imprisoning him," he said.

"The department, and I don't want to be unkind about it, are imprisoning him.

"I really don't want him to be in secure welfare."

Campus principal Maree Cribbes had sent a letter to parents following the incident, which had occurred about midday.

"This incident prompted us to enact our student safety procedures," she said in the letter.

"We took immediate action and informed Victoria Police.

"On their advice, students returned to their classrooms early from lunch break while police attended."

She said support was available for any student who required it.

Mr Dunn urged the government department to find a placement that would assist the alleged offender, rather than "warehousing the problem".

Concerns were raised about drugs and alcohol and his access to weapons.

Police said the principal would be kept informed about the matter.

The youth will return on April 26.

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