We obviously recognise that it must be a very difficult time for the family and our thoughts are with them

Jane Macfarlane, hospital spokeswoman

The woman was transferred to a nursing home three days after the incident.

Victoria Hospital confirmed that she died on Friday morning.

The hospital's communications manager Jane Macfarlane said a full internal investigation had been launched.

"We obviously recognise that it must be a very difficult time for the family and our thoughts are with them.

"The police were called in immediately last weekend and a report has been submitted to the procurator fiscal and so we will not be commenting further," she said.

Under guard

It has been reported that the alleged attacker was given a bed in the same ward as the woman.

After the incident, the man was put under guard by security staff at Victoria Hospital, before being moved to Stratheden Hospital, near Cupar, Fife.

James Kennedy, head of the Royal College of Nursing in Scotland, said single sex wards were "essential for the dignity, safety and comfort of patients".

The Scottish Executive has promised to phase out mixed sex wards by March 2002 across all of Scotland's 28 hospital trusts.

The scandal of continuing mixed sex wards is yet another example of Tony Blair's failure to deliver in the NHS

Liam Fox, shadow health secretary

Tricia Marwick, Scottish National Party MSP for Mid-Scotland and Fife, said the family had been "traumatised by the events of the last week".

Ms Marwick, who was contacted by the woman's granddaughter after the alleged assault said: "There needs to be a full inquiry by the Victoria Hospital in Kirkcaldy and the Fife Health Board into all of the circumstances.

"I hope they will reflect on the use of mixed sex wards and the staffing levels at the time when the alleged assault took place."

Shadow health secretary Dr Liam Fox said: "The scandal of continuing mixed sex wards is yet another example of Tony Blair's failure to deliver in the NHS.

"After four years in government no amount of spin can hide the fact that Labour have simply given no priority whatsoever to ending this Third World aspect of health care."