A 77-year-old woman bashed while taking her dogs for an evening walk in Melbourne's west has died in hospital a week after the attack.

Le Ngoc Le was found in a driveway of a St Albans home with serious head injuries last Thursday night, not far from her own home.

Amy Tran, 30, was arrested the following morning.

She faced court on Monday charged with intentionally causing serious injury but that is expected to be upgraded to murder.

Neighbours said Ms Le, an Australian-Vietnamese woman, walked her two little dogs along Willaton Street in St Albans every day.

She was found by a passer-by with serious injuries to her head and face.

Ms Tran told the Melbourne Magistrates' Court on Monday she had not attacked Ms Le.

"I heard that I got blamed for hitting someone," she said.

"I deny that."

The court was told Ms Tran had a history of drug abuse and had been diagnosed with schizophrenia.

Magistrate Andrew Capell told the court he could not grant Ms Tran bail, given the circumstances.