A fight outside a block of units in Sydney where convicted pedophile Dennis Ferguson is living has resulted in a man being taken to hospital with stab wounds to his abdomen.

Mr Ferguson, 61, has been living in public housing in Ryde for the past two weeks and is under pressure to move after residents learnt of his past at the weekend.

He was jailed for 14 years in 1988 for kidnapping three children and sexually molesting them in a Brisbane motel.

He completed a 14-year jail term for the offence and has since been chased out of several Queensland communities before relocation to NSW.

A suspected unlit petrol bomb was found outside Mr Ferguson's home on Tuesday night, after NSW Housing Minister David Borger said the Government did not have the power to remove him from the area.