The officer, whose name was not disclosed, was conducting personal business about 3:30 p.m. Saturday in the area of Kramer and Yorba Linda boulevards when the incident occurred, according to the Fullerton Police Department.
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"The assailant, armed with a stabbing instrument, attacked the officer, injuring him," according to a news release, adding that the attacker then fled the scene on foot.
The wounded officer was transported to a hospital with injuries that were serious but not life-threatening. He has since been released.
Following a multi-agency search, a 19-year-old parolee and Placentia resident was taken into custody.
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"The ongoing investigation has now cleared the subject who had been arrested," Placentia police later said in a statement.
The assailant remains at large. He is described as being in his late teens or early 20s, with a thin build, short black hair and wearing a black baggie T-shirt.
Anyone with information about the case is asked to call Placentia police at (714) 993-8146.