20 November 2015 Last updated at 12:44 GMT
The unusual creature was spotted in Grove Park, Dunstable, where Bedfordshire Wildlife Rescue has spent the past fortnight searching for it.
Dr Helen McRobie, a lecturer in biomedical science at the Anglia Ruskin University, said its lack of hair is probably caused by a genetic defect.
"This is very rare, I have been studying squirrels for years but I have never come across one without any hair," she said.
"Sadly, the squirrel is probably not going to survive the winter if it remains at large. It needs to be kept in the warm once the temperature drops."
BBC journalist Toby Friedner said he came across the squirrel on his way to the supermarket.
A bald squirrel that has evaded capture by animal experts concerned it could freeze has been caught on camera.