Fire has destroyed a large yacht moored at the d’Albora Marina at Nelson Bay.

Firefighters were called to the marina at about 7.30pm on Monday where the 70 foot yacht was well alight.

Crews were unable to access the vessel and an RFS boat was brought in to help prevent the fire from spreading to other craft moored nearby.

A boom was also placed around the yacht to contain 1000 litres of diesel onboard.

Police say the yacht has burnt to the water line and has sunk.

A fire crew remains on scene and it’s expected a salvage operation will get under way sometime on Tuesday.

The cause of the fire has not been determined and no-one was injured.

Fire has destroyed a luxury yacht at Nelson Bay Picture: Kearsley Fire & Rescue