Search continues for 'missing' NSW swimmer

A search is continuing for a man feared missing in the surf off the NSW north coast.

The man described as being in his 60s with a limp was seen entering the water at Yamba just after midday on Sunday.

His hat and towel were still on the beach hours later.

Police spoke to several witnesses and life guards but say no one saw the man return from the surf.

They are appealing for the man or anyone with more information to contact them.