A 95-year-old woman who was allegedly tasered by a police officer in her Australian care home, died in hospital on Wednesday, the New South Wales police force said.

Clare Nowland, who had dementia, was tasered after staff found her holding a knife outside her room in the centre in Cooma in southeastern Australia on Wednesday last week, police said at the time.

The force launched an investigation and on Wednesday said a senior constable would appear in court next week to face charges of recklessly causing grievous bodily harm, assault occasioning actual bodily harm and common assault.

"It is with great sadness we confirm the passing of 95-year-old Clare Nowland in Cooma tonight," New South Wales police said in a statement.

"Mrs Nowland passed away peacefully in hospital just after 7 p.m. this evening, surrounded by family and loved ones who have requested privacy during this sad and difficult time."

The state's Police Minister, Yasmin Catley sent her condolences and said her sympathies were also with the people of Cooma, a town of 7,000 inhabitants, and the residents and carers at the home.

"We will continue to offer support to the Nowland family as they mourn this loss," she added in her statement, according to the Sydney Morning Herald.