"They have taken her inside and attempted to extinguish the flames with water."
The woman was rushed inside a nearby business, believed to be a brothel, where an employee extinguished the flames.
Paramedics treated her for severe burns to her upper body, before taking her to Royal Prince Alfred Hospital where she is in a critical but stable condition, Mr Crisafulli said.
Police said they were now looking for a man seen running from the scene into Meagher Street.
He is described as being of medium build and was wearing white joggers, long dark pants and a long sleeved dark hooded jacket.
Anyone with any information should call Redfern Local Area Command or Crime Stoppers on 1800 333 000.
-AAP