The incident took place late last night at Dibbalavari Palem on the outskirts of Yeleswaram, in which the woman identified as P Seetharthanam died, police said.
"The woman, who lived alone, was asleep when her house caught fire. When her neighbours noticed the flames, they rushed to the spot, but by that time the woman had died," Yeleswaram Sub Inspector M Applala Naidu said.
Although the police are yet to ascertain the cause of the fire, they said they are probing all angles.
According to police, the elderly woman has two sons, but was living separately.
After the post-mortem, her body was handed over to her relatives, he added.
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