An elderly man has died in a fire inside his unit in East Perth.

Firefighters were called to the three storey block on Terrace Road around midnight.

They managed to contain the blaze to a unit on the second floor.

The body of an 89 year old man was found inside the unit.

Police believe the blaze was started by a heater and the victim was overcome by smoke before he could escape.

Damage to the property has been estimated at $100,000.