Emergency services have been contacted but are still unable to save the two sailors, who spent the night stranded at sea after their racing yacht took on water due to a mechanical problem.
There were two people on board the 19-metre yacht Spirit of Mateship that began taking on water off the coast on Monday afternoon.
The Australian Maritime Safety Authority received a distress call from the Spirit of Mateship at 12.40pm. New South Wales Police confirmed that a distress call was received approximately 150km off the coast of Nowra.
According to AMSA, there were waves of up to five meters high and wind speeds of 70-90 km/h.
On Monday evening a rescue helicopter flew to the yacht, but it was probably unable to take the passengers.
A NSW Police vessel reached the yacht and contacted the occupants on Tuesday morning, but due to extreme weather conditions the crew was unable to rescue the occupants.
The rescue operation also involved two Royal Australian Navy ships and an RAAF C-130J Hercules aircraft.
Since 2013, the Spirit of Mateship yacht has competed in a number of Sydney to Hobart races.
Since 2013, the Spirit of Mateship yacht has competed in a number of Sydney to Hobart races.
Both HMAS Arunta and HMAS Canberra are en route to rescue the sailors (pictured HMAS Arunta during a training exercise)
