A brave woman risked life and limb to save a badly burned koala from a bush fire and her amazing heroism has been caught on video.

The woman, who gave her name as Toni, rushed in amongst burning trees and scrub to rescue a badly injured koala, tearing off her shirt to wrap up the terrified marsupial.

The video shows the animal letting out plaintive squeals at Toni douses it with cold water.

The incident took place near Long Flat in New South Wales and Toni told Nine News she would rush the injured koala to the nearby Port Macquarie Koala Hospital.

The koala was trapped by fire. (Photo / Nine News)

The animal was transported to a local koala hospital. (Photo / Nine News)

A GoFundMe page has been set up to help the Port Macquarie Koala Hospital nurse the koala's impacted by the fires back to health.

The campaign has reached over $800,000 in donations.

"The Port Macquarie Koala Hospital is an animal welfare, scientific research and education facility that will send out and conduct search and rescue exercises in the hope of finding surviving koalas," the page reads.

"Any surviving koalas will be brought into the Port Macquarie Koala Hospital for assessment and treatment.

"One way to help surviving koalas and other wildlife is to provide access to water to reduce further deaths from dehydration.

"The Port Macquarie Koala Hospital would like to raise money to purchase and distribute automatic drinking stations which will assist in helping koala and wildlife survival."