Police have found the skeleton of an elderly woman who died alone in her inner Sydney home up to eight years ago.

Officers went to the woman's terrace house in Surry Hills about midday yesterday, after her sister-in-law reported she had not been seen since 2003.

They found the woman's remains on the floor in an upstairs bedroom.

The woman would have turned 87 next month.

Acting Superintendent Zoran Dzevlan says it does not appear the death is suspicious, but it is alarming it was not discovered earlier.

He says the long period without contact from the woman's sister-in-law, who was her only living relative, was the result of a family feud.

"I understand they haven't spoken for a number of years and... something's occurred within the family that I can't go into that forced her to make contact," Superintendent Dzevlan said.

"The electricity was turned off, how long we don't know. In relation to the mail, the person that lived at that home has had their mail redirected for a number of years and a number of years before 2003.

"It just serves as a reminder for people to keep a neighbourly eye on those who live in our area, especially the elderly. If you haven't seen someone for a while, knock on their door and see how they're going."

Neighbours have told the ABC they have never seen anyone entering or leaving the property.

"I don't think you can do anything about it. If people choose to live like hermits then there's nothing you can do. I don't think you can stop people," said one neighbour, David.

"The community here is quite good. People do talk to each other. They do nod in the street."