According to AdelaideNow, Rajini Narayan, 44, appeared briefly in Adelaide Magistrates Court, charged over the fire at her family's home in Unley.
The fire left Satish Narayan with terrible burns and prosecutor Senior Sergeant Bruce Faehrmann said the injuries could prove fatal.
"Mr Narayan was set on fire and his condition has deteriorated to the extent that he has 85 percent burns," News.com.au quoted him, as saying.
"It is possible that he may not survive so the charges may be reviewed," he added.
The Advertiser understands that police will allege Rajini applied methylated spirits to her husband's genitals as he slept then set fire to him.
Satish is believed to have knocked over the bottle of methylated spirits as he rose from the bed, sparking the major blaze.
Rajini is charged with one count of aggravated causing harm with intent, arson and three counts of acts to endanger life.
She made no application for bail and was remanded in custody to appear in court in January.