A woman who allegedly doused a friend in petrol and set him alight told police he had touched her breasts while she was sleeping, a court has heard.

Kerry Anne McNiven, 43, appeared in Wangaratta Magistrates Court yesterday charged with the murder of Gary Stewart, 50, on November 18 last year.

Gary Stewart died in hospital after suffering burns to 72 per cent of his body.

The first day of the committal hearing heard Ms McNiven, of no fixed address, admitted to Sergeant Brian McCormick, of Wangaratta police, that she was responsible for the attack on Mr Stewart.

The attack occurred on the banks of the Ovens River near the Templeton Street boat ramp, about 6.20pm.