A man is in a critical condition in hospital after he was set alight by a neighbour during a dispute at Mangerton, near Wollongong, NSW police have said.

Officers were called to a unit on Myuna Way about 9:00pm on Tuesday following reports a 45-year-old man and a 44-year-old woman had been badly burnt.

Police alleged a man set his two dogs on the pair, before dousing the male victim with a flammable substance and setting him alight.

The woman was also burnt when she tried to help him.

One witness said there was a lot of yelling and screaming.

“It’s pretty bad, it’s pretty stuffed up. It’s scary,” she said.

“I stayed inside. It’s too scary to come out when there’s an argument.”

Man in critical condition

Both were treated by paramedics at the scene before being taken to Wollongong Hospital.

The man, who required specialist treatment, was flown to a Sydney hospital, where he remained in a critical condition.

Police said the woman was in a stable condition.

Officers arrested a 41-year-old man at a nearby unit, about 10:30pm.

He has been charged and refused bail to appear in Wollongong Local Court today.

Police said the man’s home was being searched.