More than 350 people are feared missing after a boat accident in Papua New Guinea's northeast.
PNG's National Maritime Safety Authority says about 8.30 this morning (AEDT), the ferry between Lae and Kimbe West sent a distress signal.
Australian diplomatic staff are monitoring the situation, but there have so far been no reports of Australians on board.
Prime Minister Julia Gillard says there is likely to be a very high death toll from the sinking.
The ferry carrying 350 people on Thursday morning sent a distress signal from waters between Lae and Kimbe West.
Ms Gillard later said the boat had gone down.
'There has been a boat go down in PNG with, as we understand it, 350 people on board,' Ms Gillard told reporters in Melbourne.
'This is obviously a major tragedy.
'We have been asked to provide assistance to PNG and we are providing assistance to PNG.'
Mr Gillard did not elaborate on the assistance.
Australian officials were also trying to find out whether any Australians were on board, she said.
'But given the likely very high loss of life here, I think when this news comes to the attention of Australians around the country, they will be thinking about the people of PNG as they respond to this tragedy.'
