Arson suspected in Sydney boat blaze

Investigations continue into a blaze at a Sydney wharf that has destroyed two luxury boats worth $2 million.

The 40-foot vessels, a cruiser and a yacht, were destroyed in the fire at Woolloomooloo's Finger Wharf early on Saturday.

Detectives believe the blaze was deliberately lit and questioned a 24-year-old on Saturday before releasing him without charge. He remains a person of interest.

What is left of the vessels now lies at the bottom of the harbour.

They will be salvaged in coming days after police divers have had the chance to inspect the wreckage.