Context. Erupting magnetic flux ropes (MFRs) are believed to play a crucial role in producing solar flares. However, the formation of erupting MFRs in complex coronal magnetic configurations and the role of their subsequent evolution in the flaring events are not fully understood. Aims. We perform a magnetohydrodynamic (MHD) simulation of active region NOAA 12241 to understand the formation of a rising magnetic flux rope during the onset of an M6.9 flare on 2014 December 18 around 21:41 UT (SOL2014-12- 18T21:41M6.9), which was followed by the appearance of parallel flare ribbons. Methods. The MHD simulation was initialised with an extrapolated non-force-free magnetic field generated from the photospheric vector magnetogram of the active region taken a few minutes before the flare. Results. The initial magnetic field topology displays a pre-existing sheared arcade enveloping the polarity inversion line. The simulated dynamics exhibit the movement of the oppositely directed legs of the sheared arcade field lines towards each other due to the converging Lorentz force, resulting in the onset of tether-cutting magnetic reconnection that produces an underlying flare arcade and flare ribbons. Concurrently, a magnetic flux rope above the flare arcade develops inside the sheared arcade and shows a rising motion. The flux rope is found to be formed in a torus-unstable region, thereby explaining its eruptive nature. Interestingly, the location and rise of the rope are in good agreement with the corresponding observations seen in extreme-ultraviolet channels of the Atmospheric Imaging Assembly (AIA) of the Solar Dynamics Observatory (SDO). Furthermore, the foot points of the simulation’s flare arcade match well with the location of the observed parallel ribbons of the flare. Conclusions. The presented simulation supports the development of the MFR by the tether-cutting magnetic reconnection inside the sheared coronal arcade during flare onset. The MFR is then found to extend along the polarity inversion line (PIL) through slip-running reconnection. The MFR’s eruptive nature is ascribed both to its formation in the torus-unstable region and also to the runaway tether-cutting reconnection.