Gardai are investigating the incident which happened after a house party in the area.
“This was a vicious attack and the victim is being treated for serious injuries at Letterkenny General Hospital,” said one source.
“The exact nature of the incident is still being investigated but it appears this young man was savagely attacked.”
It is believed the man, who is 19, may have been punched a number of times and he may have hit his head as a result of falling down.
It’s understood Gardai are following a definite line of inquiry in their investigation.
The victim of the attack is from Gaoth Dobhair. His family are by his side in hospital.
A house in the Annagry area has been examined by forensic officers investigating the attack.
Local people are stunned.
“This was just horrendous and the wee boy was really badly hurt. He suffered terrible injuries to his head,” said one local woman today.
Gardai at Bunbeag have appealed for information on the incident.