The monk is reportedly being treated for his wounds after the protest in Changdu, known as Chamdo in Tibetan.
If confirmed, the incident would be the first self-immolation in the Tibetan Autonomous Region.
Activists say 11 monks and former monks have set themselves on fire this year, but the incidents have all taken place in Tibetan areas of Sichuan Province.
Access to the Tibetan Autonomous Region is tightly restricted, and information is difficult to corroborate.
Radio Free Asia reported that the monk, a 46-year-old named as Tenzin Phuntsog, had scattered leaflets and shouted slogans before setting fire to himself on Thursday afternoon.
The US-based broadcaster quoted an anonymous source living in India, and another source calling from Tibet as confirming the incident.
“[The former monk] was very frustrated by the recent imposition of restrictions on Karma monastery and by the detention of many monks. There was even talk by Chinese officials of closing the monastery,” the source in Tibet was quoted as saying.