A woman has died after being hit by a taxi near the Royal Prince Alfred Hospital (RPA) in inner Sydney on Saturday afternoon.

Emergency services were called to Grose Street in Camperdown about 1.30pm after two women, aged 62 and 85, were hit by a car.

Both were taken to the nearby hospital, where the 62-year-old woman died. The 85-year-old is being treated for head injuries.

The taxi driver, 69, was uninjured. He was arrested and taken to hospital for mandatory tests.

Police are investigating the incident, which occurred on a quiet, one-way street behind hospital facilities and near secure hospital parking.

Officers from the Inner West Police Area Command are asking anyone who witnessed the incident to contact police.

A report will be prepared for the coroner.